Real Estate Business Takes A Turn For The Better

Kiev apartments of elite class have significantly lost popularity among investors. The number of commercial deals on this market has reduced for 30 - 35 %. There is an interesting tendency: the demand for home apartments has become younger. People are interested in new buildings, not older than 5 - 10 years.

Starting from last November the number of deals on elite apartments market became bigger in comparison with earlier 2009. But if to compare the same period of 2008 and 2009, there is a big decrease of about 30 - 35%. The biggest interest of investors and buyers were Kiev apartments at the price of $4 - 5 thousand per square meter. And of course the preferable variants were newly built solutions.

According to realtor's review, the demand for real estate at the price corridor of $200 - 300 thousand has reduced for about 69%. All in all the number of deals for such property was little more than 5% from the general number of real estate bargains. The number of deals in segment of $300 - 400 thousand costs reduced for 53%.

The governmental information claims that the total number of commercial deals on real estate market has been changed during 2009 from 30% to 80% reduction.

As for the rental property, here is the same reduce as in elite real estate section - 30 - 35%. Due to crisis the budget of renters has been also reduced, that is why the rental business now becomes more problematic. Nevertheless realtors are adjusting to the market conditions and reduce their prices too.

The segment of daily rent apartments has also reduced in number of deals, but less than other sections of real estate market. As this type of rent is usually used by business visitors and tourists, these clients are always present. The prices look quite attractive for foreign visitors, they are much less expensive that their native prices for lodging.

In the segment of monthly rent the amount of deals increased, if to take the price category of $2 - 3 thousand monthly. The growth was about 82% or 851 contracts, up to 4267 deals.

The general situation on rental property market looks like the following. 14,6 % of total number of deals is for elite apartments, 55,1% were the deals for standard flats and the rest of deals were made for office real estate.

If to consider the future tendencies, it is expected that in 2010 the Ukrainian real estate market will be stabilized in both price and number of deals. The expected price change will not exceed 5%, and more probably, it will be reduction of average prices.

The idea of price stability in 2010 is supported by most of local and foreign experts. All of them declare the insignificant change of prices while the number of deals will grow. It is a great prognosis for Ukrainian real estate market, the stability here means real economical success. Of course it is far from growth but definitely better than reduction.

The hotel business in Ukraine is expected to experience new difficulties due to the forthcoming UEFA Euro 2012 football tournament. About 76% of existing hotels in Kiev belong to budget-economy section by national standard that significantly differs from international. So to survive they need to optimize and improve their service up to higher standards. Kiev is the host city of Euro 2012 final, so by this time it has to provide all required services for appropriate hosting both tournament guests and participants.

By 2012 there are expected lots of newly built hotels that correspond to high international standards. So the competition for existing hotels will increase and they need also to renovate their apartments to attract more clients. Otherwise there is no way to survive.

As you see Kiev struggled from deep crisis but 2010 is a year that promises the situation will go for the better. This means better investment climate, better stability and more guarantees for profitable real estate business.