What real estate is in demand in Kiev?

Contrary to last year's forecast Realtors get up to mischief exchange rates and the general crisis in the real estate market led to the collapse of prices for elite apartments in the metropolitan average of 35-37%, writes Business Capital.

Apparently, this was the cause of revival though weak, but steady demand for premium-class apartments. Encourage him to be a growing segment of the proposal: a database of realtors are replenished from the previously withdrawn from the sale of apartments and put into operation new buildings.

Prices collapsed

Although Kiev luxury housing on the set of parameters falls short of European standards, for the past three or four years, its value steadily exceeded rates for similar apartments in many European capitals. A view of the previously observed deficit in the supply segment and excess in Kiev millionaires Realtors predicted further growth in value, arguing that housing of such a class can not depreciate under any circumstances. Last year introduced in their forecasts serious adjustments. According to the portal Capital Real Estate ", from August 2008 to September 2009 price of luxury housing on the primary market of Kiev has fallen in dollar terms to 35.4%, and in the secondary - on 37,5%. However, in domestic currency given shelter in the same period has risen in price by 10-20%. "But, unlike the economy class and rental apartments in the most expensive segment of the increased cost of housing in UAH remains virtually unnoticed. After all, the prices here, as did profits and buyers of such properties, mostly denominated in dollars," - notes director of agency services AN "Sitikon" Edward Brasas.

To date, the average cost of premium-class apartments in the primary market capital is $ 3,430 versus $ 5,310 thousand UAH. per square. meters a year ago. And the secondary prices fell for the year to $ 7-9 to $ 4-6 thousand / sq. m. An expert on real estate EA Blagovest Alexander Elk, one of the main reasons for the collapse of prices - a lot of credit for sale of apartments, the owners of which this year is difficult to fulfill debt obligations to banks. "In the total supply of elite housing share of such apartments is 40%. Many owners agree to bargain, reducing the price of even two or three times against last year," - he said. This is confirmed in the Academy "Sitikon", whose representatives noted that the recently implemented a $ 570 thousand a flat area over 100 square meters. m on the street Hrushevskogo 9, for which in early 2008, the owner asked $ 1.5 million, and in early 2009 - $ 650 thousand in other agencies give us examples of a deal to sell a 4-room apartments with area 160 sqm. m Staronavodnytska on the street for $ 780 thousand, whereas in the summer of last year, the owner wanted to get for her $ 1.4 million for $ 750 thousand has been recently implemented and a flat premium area of 160 sqm. m Lesya Ukrainka, for which the owners initially demanded $ 1.3 million

Another reason for the general collapse of prices in the segment was the policy of some developers of elite units that originally have declared the cost of apartments being built in UAH. As an example, head of consulting and sales of residential luxury real estate firm Knight Frank Natalia Pronina leads complexes premium "Count Tolstoy and Botanic Paradise, the cost of apartments in which the dollar has fallen more than 30%.

Demanding elite

According to Alexander Los, now in databases metropolitan agencies totaled more than 1 thousand objects, whose value ranges from $ 500 to $ 1 million, and only about 30 apartments for more than $ 1 million while a year ago at an apartment worth more than $ 1 million accounted for 25 -30% of the total supply. "The current prices are comparable to the cost of gentrification of the East European capitals, whereas a year ago, they shocked the Europeans," - he said. Apparently, this, according to realtors, and bring to market the real buyers. "Let them today are rare, but the segment began to show a fairly stable level of actual transactions, whereas in the first half of its almost not there. The amount of calls asking to find luxury properties, as well as views, now grown, even when compared with September 2008 "- Approves Mr.-rn Brasas.

Realtors state that has changed and the requirements of potential buyers. Whereas previously the most expensive metropolitan housing approximately half of the cases considered to be the subject of investing, but now the market is dominated by real buyers, who make high demands not only the location of the apartments, but also to their quality and fitness for everyday life. Specialists EA Park Lane noticed that most potential buyers are looking for housing on the "Resale", since the purchase of an apartment in even put into operation a new building would increase the cash cost of capital improvements. "The biggest demand for premium housing market now is for apartments with a modern renovation and design, copyright, located in an already occupied new buildings that are in operation confirmed the elite status," - said the agency. According to realtors, existing customers pay attention not only on the quality of finishing materials and sanitary equipment, but also on the engineering building, presence of parking lots with plenty of parking spaces (more than an apartment), a beautiful and large local area, as well as additional services in building. At the same time, much less attention has been paid to binge: gold finish, built-in sculptures, columns, etc. The agencies added that about a quarter of demand in the segment, as previously, accounts for the reconstructed house in the heart of Kiev, where potential buyers in new no gingerbread not be enticed.

Sensing the increasing competition, developers have moved to the implementation of already finished or nearly finished luxury housing. "The primary market expensive housing now compete on equal terms with the secondary, because almost 80% of new buildings offer premium is at the stage of delivery, or already in operation", - says Natalya Pronin. Thus, to the public today, are already completed residential complexes "Alpine", "Clubhouse for Glazunov," "Clubhouse" Diamond ", Botanic Paradise, first and foremost a residential neighborhood" Vozdvizhenka "and already populated by" The Capitol "," Ambassador "" Triumph ", where the vast majority of apartments were sold out in pre-crisis period, but the order of 5-10% of the apartments have remained unrealized.

The proposal will increase
According to observations of real estate professionals, major buyers of luxury housing today are representatives of business and political elite of the country who have one year of inactivity of the market has matured "housing problem": because of divorce, the need children have moved out of or in connection with childbirth, which require separate room. "As in the segment of economy class on the market of elite housing are increasingly trying to implement a transaction exchange. It is important not so much the dollar, how much choice, that today is just and can offer the market ", - says Alexander Moose. Confirms this and Edward Brasas, according to whom the past two months, the offer of elite facilities in the capital rose by more than 50%. "Now the market had the delicate balance that led to the return to base agencies, those apartments that had been temporarily withdrawn from sale last year. Appear and completely new proposals, and their number will grow with the commissioning of new buildings, "- he said.

Given the abundance of supply and stable, although small in demand, realtors are united in the opinion that in the next six months, the elite of the capital cost of housing would not grow. "In nedalney term prices will remain stable, but also buy - single, and then mainly due to the appearance of objects interesting for price / quality ratio. Further market situation can be predicted only after the presidential elections, forming a new government and analyze the effects of current experiments with the country's economy ", - concluded Mr. Brasas.