The growth of the housing market in Kyiv
Market buildings in the capital continues its growth. In III quarter 2016 sales were opened in 16 new sites and 7 residential complexes started new courses, adding to the market 6000 apartments. Compared to the same period in 2015 growth of new proposals have doubled. As of September 2016 active sales are conducted at 215 sites, which is 8% more than in September last year.
Total volume in the primary housing market has exceeded 130 thousand. Apartments, of which 68% – on the right bank.
Among the leaders in terms of new proposals in the III quarter 2016 became Solomians’kyi and Darnytskyi areas, which accounted for 28% and 17% of the new projects have opened sales in July-September 2016. In the structure of the new proposals of projects of economy and comfort class exceeds 82%. 75% of new proposals are focused on the right bank of the capital. The right bank traditionally enjoys popularity among developers and investors. In III quarter of 2016 sales opened on the left bank and in 4 new sites, on the right – in 12.
Updating the market was both due to large projects, multiple queues, and by small objects – the developers are trying to develop areas where you can quickly start building work and open sale.
In the structure of offers of new projects which opened sales of summer and autumn of 2016 one-room flat and studios occupy 56%.
The new projects which opened sale in III quarter of 2016, the developers changed the ratio of 1-2-3-room flats for 2 and 3-room, responding to the demand for housing with increased functionality. This trend is seen in both planning new apartments – kitchen-living room and in the apartments that continue to be optimized.
The average area of apartments decreased slightly, mainly due to the cost of budgetary projects, offering studio apartments ranging from 22-25 square meters. Growth of number of 3-room flats is caused by maximizing efficiency of projects, when mastered technical floors of buildings by creating a 2-level apartment.
As for prices, on the market for primary residential real estate, the situation was ambiguous. If the first half of the year and in July the average price decreased in almost all segments, from August the trend changed – prices rose by 7.12% in housing prestige and comfort of the class.
One of the reasons for the sharp price increases were currency fluctuations of the hryvnia to foreign currencies, which occurred in late August – early September. Thus, projects where prices are denominated in dollars changed the hryvnia equivalent price. Another reason for the increase in average prices was the opening of sales in new projects with a price above the market average. And the third reason for the rise in prices was the traditional seasonal market recovery, under which developers usually plan a slight increase in prices.
Summarizing the results of 9 months of 2016 the growth of average prices recorded in tops and comfort class. Average growth over this period ranged from 2 to 4.7%. In fact, prices, after a six-month drawdown, returned to the level of December 2015.
As for economy class projects, over the first 9 months, the average fell 8.5%, due to a continuing price dumping, and the release of new projects to the market with low prices. Developers do their best to reduce the cost of the total budget as purchases by reducing the area of apartments and by price.
This article was prepared by materials of ABCnews