Low transparency of Ukrainian real estate market deters investors

In 2009, domestic investors did not cause any property interest in the regions of Ukraine due to the low transparency in the regional markets.

Such an assessment of the situation on the commercial property market in 2009 given by experts of the company Colliers International.

According to experts, the investment market started to play a major role, by analogy with the global trend, domestic investors. "The volume of available own funds of such companies are relatively small and usually amount to $ 10-20 million", - explained in the company.

Colliers International experts also point out that investment in real estate in areas not attractive to domestic investors because of low transparency of the regional markets, but raised the interest of non-core players. "At the same time, high value assets in Kiev was unable to meet the demand from this segment of investors," - say the experts.

According to the study, banks and financial institutions will not be thrown on the market collateral objects on problem loans, so the market did not raise oversupply stressful assets. "Those assets that are offered for sale, always exceeded the value of loan commitments," - experts say.

According to the company as a whole in 2009, the real estate market of Ukraine there have been no investment transaction, but the facts are known through the acquisition transaction by netting (acquisition ISTIL Real Estate Hotels in Leipzig) or through an exchange of assets (redeployment stakes in regional TC projects between the company XXI Century and its regional partners), wrote contracts.

As reported earlier, in 2009 in Kiev, the cost of land for commercial construction fell by 30-40%, and in some cases - more than 50%.