In 2018, property prices still soar, experts say

Prices for apartments in the primary market in 2017 were not subject to strong changes. Fall didn't give them the appetite of developers, and to grow has not allowed moderate demand: the welfare of the Ukrainians, though has increased over the year, but just not much.

At the end of last year, the average price in the primary market amounted to about $900/sq. m. depending on the segment of housing — from $650/sq. m. for "economy class" and $2500/sqm for premium housing. But, in 2018, prices still soar, experts say. To smooth out the corners, the builders will try an additional affiliate loan programs and installment. And the rise in the cost per square meter will be due to strong currency fluctuations, and, accordingly, the increasing cost of developers.

"Given the high competition in the market, this will happen gradually and probably more impact on the quality of construction and choice of technology than on price. Average primary housing market forecast 2018 — a rise in the range of 10-15% in the hryvnia equivalent," — said the head of consulting NAI Ukraine Marina Gurevich. As told to us by the developers themselves, they will promptly undertake to rewrite their price tags in exchange rate fluctuations of 1-2 UAH. on the dollar. After the year-end devaluation, already seen a slight increase in average prices. According to the VA. head of sales LCD Park Svitlo Denis Pavlenko, even if the economic situation in the country will be more or less stable annual growth of cost per square meter in some segments of the housing may be about 5-7%, but it will affect only the most popular and comprehensive development projects. But with sharp foreign exchange fluctuations, as it was a few years ago with 8 to 15 UAH. for a dollar, the developer quickly and completely stop the sale of 2-4 weeks in order to coordinate not only the prices but their entire expenditure budget. After all, while sharp fluctuations in the exchange rate will change the prices of construction materials, primarily imported.

According to experts, in 2018, a very active lobby the leaders of the primary real estate market to curb the growth of construction volumes, including the blocking of market entry for new players.

"While you can forget about foreign investment and the growth of the investment attractiveness index of Ukraine. On the other hand, rising prices could be affected by the increase in the number of potential buyers. Developers will be forced to curb supply growth because the incomes they cannot influence. If the market was given the freedom to develop and not to limit it, in 2018, rising prices would not be," — says CEO of development company Greenol Oleg Prikhodko.

Nevertheless, investors continue to view apartments in new buildings for the investment of available funds as alternative investments in currency, Bank deposits, securities, precious metal, etc.

Many of the most interesting apartments in buildings of economy and comfort class, sold out at the very beginning of construction and the commissioning of the house unsold flats remains. For example, 1-2-bedroom inexpensive apartment in one of the Metropolitan complexes was sold out in a few days after the start of sales, which the developer announced the day before.

"At the beginning of the sales value of the square is the lowest, the importance of the reliability of the developer, the location of the LCD and the liquidity of these apartments. Shares of the developer, holds then, after the increase in the cost per square meter and a certain number of unsold apartments," — said the Chairman of the Kiev branch of the Association of Realtors of Ukraine (ASNU) Kulishenko Vladislav. But if you contact the new building at the initial stage of construction, should be extremely cautious, experts say. The construction of the pyramid has not been canceled. "Protracted may be more, but not much 5-10%", — said Kulishenko.

To avoid becoming a victim of fraud, experts, in addition, it is recommended to very carefully study the contract which the developer slips for signature to the investor. One of these pitfalls — the contract does not prescribe a return date by the developer of money for the purchased apartment. For example, in case of refusal of the buyer from the contract at its own initiative or upon non-compliance with the terms of the agreement by the developer or termination of the contract at the initiative of the latter. It indicates only penalties. In sales explain this practice in the absence of legislative requirements. Although this cannot directly indicate the dishonesty of the developer, the money to the client in which case you can return forever.

Also bear the risks of buyers who are buying flats, paying for the meters share in the service cooperative. After entering the house in operation right of ownership is registered on the last himself, and then the buyer changes his share of the apartment. "If the buyer wants to sell the apartment to another person earlier, according to the contract he will have to write a letter to the Board of the cooperative, and they will have to consider it for 1 month and then have the right to give the documents in the course of the year. It is, in some treaties," he warned Vladislav Kulishenko.


According to the materials of UBR