Financial News and Economical Crisis

in 2009 proved disastrous for the Ukrainian property market. According to the Justice Ministry, the number of operations on the sale since the beginning of the year decreased by 77%.

year brought grief realtors and developers, but has not met the expectations of customers. Prices per square meter in comparison with 2008 has decreased slightly. Can I count on the fact that the 2010-th move the market off the ground.

projections for developments in the real estate market for 2010 is very controversial. Ukrainians promise and collapse in housing values in summer, and the revival of the sector. But the truth, as usual, in the middle - significant changes, as for the better, as well as to poor, we should not wait.

banking crisis and the lack of mortgage money have put the Ukrainian market of real estate on the brink of survival. Sold only shelter and only Resale. In this trend, there are positive aspects - from the market completely gone speculators. Flats and houses to buy only for their own use. 2009 has seen a significant reduction in cost per square meter. According to the Union of Realtors, prices fell by 20% compared with 2008-m. The lowest prices were in March. Then the minimum cost of the capital”s one-room apartment was $ 30 thousand But the positive, perhaps, the end. Contrary to expectations, the further reduction in prices has not happened. Moreover, until August, real prices rose by 11% and has since been kept at about the same level.

far worse things in the sector of commercial real estate. Prices for the purchase of office space have fallen many times, square meter sold for a record 10 UAH. If the pre-crisis years of commercial real estate cost more than residential, it now concedes it costs twice changed dramatically and the market rent. If in 2008 the right to dictate landlords, then this year”s ball tenants” rights. This is especially true of the capital and major cities: the crisis sent to his residence, hundreds of tenants from small towns and villages. In the second half of 2009 to one tenant accounted for 5.7 in Kiev apartments. Monthly cost of renting a one-room apartments metropolitan economy class to the end of December of 2500 - 3200 UAH.

future of Ukrainian real estate market will be entirely dependent on the state of affairs in the financial sector. Given the fact that the NBU has forbidden to issue foreign currency loans in the sector must attract a significant number of hryvnia resources.

After the low season in early 2009, banks began to be in the summer to give mortgages. But they are still very expensive and very few people are available. Average lending rate is 30% per annum, banks issue loans for the purchase of ready-made home - that is, credited only to the secondary market. “This trend, as before, due to the fact that banks prefer to lend to” selectively “- offer the least risky borrowers, in terms of bank loan products” - explained the situation to the Internet newspaper “NOW” Deputy CEO “Brokbiznesbank Natalia Syniavska. Financial institutions pay great attention to the client”s solvency. “Banks are mainly given credit only for two years, with the official borrower”s income must be EUR1000 and above”, - said the financial director of Prostobank-Consulting Alexander Sedykh.

Market experts of finance and real estate agree that the mortgage on a scale to affect the market, activated no earlier than two or three years. Executive Director of the Ukrainian Construction Association Sergey Grabar set the most pessimistic. “I believe that the mortgage will be, but five years later, not earlier,” - he said during a round table in the Media Center LIGABiznesInform.

No credit - no business. While the mortgage is not restored to pre-crisis level, the global changes in the real estate market will not. 2010 promises stable immobility: developers do not build on that, potential homeowners - not for what to buy. This trend has its drawbacks - very few buildings will be put into operation. But there are positived10side - the real estate prices will not grow.

cost of housing and offices will not increase before 2011. This forecast was made chairman of the board of directors of Ukrainian Construction Association Leo Parzhaladze. “The growth of value is possible after they have restored public confidence in the market, when people understand that investing in real estate more profitable than deposits”, - the expert believes. According to forecasts, the only objects that will be in demand in the property sector in 2010 - low-cost small-sized apartments of the secondary market.