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Real estate in Ukraine: 50 thousand dollars for the Nikolaev three-room “stalin”

The real estate market in Ukraine, according to experts and expert analysts, was considered stable several years ago.

Recent years have been marked by an unprecedented increase in housing prices. About what is happening today in the real estate market of the city of Nikolaev, the journalist of Nikolaev News, Lyudmila Savkova, asked to tell the deputy chairman of the Nikolaev Regional Association of Real Estate Specialists, managing the universal exchange “Denomination” Irina Rudenko:
– Today in the city of Nikolaev very high prices for apartments, sometimes even unjustified. The price per square meter of housing is artificially inflated in the elite areas of the city of Nikolaev, in good houses, on Sovetskaya Street, on Lenin Avenue.But do not forget that the price can only increase if there is a population demand for housing. But he is. You can trace the dynamics of prices in the secondary market, which still dictates prices in the real estate market in the regional center. Over the past three to four months alone, prices have risen by 15 percent.
An unprecedented rise in prices was marked by the last three years. If, for example, a 3-room apartment in the usual state in the center of the city on a good floor cost seven thousand dollars, an improved layout with repair costs a little more than ten thousand, today the price of the same apartments reaches 50 thousand dollars.
A feature of the real estate market of the city of Nikolaev is the fact that we have a poorly developed primary housing market. And the average prices per square meter in the primary and secondary market are almost the same – 700-1000 dollars.
Tempting bank offers also became a catalyst for price leaps. Mortgage lending is gaining momentum. Thanks to him, the Nikolaev real estate market became more active. This contributed to an increase in prices not only for housing, but also for commercial real estate. At the beginning of this year, the state-owned affordable housing program “Affordable Housing” was launched, the state budget has already allocated funds for it. The main objective of the project is to increase the volume of housing construction. This program touched us to some extent. But for now, elite housing is being built mainly in the regional center, and many cannot afford it.
Therefore, they buy more in the secondary market. Consumers agreed that it is more reliable and understandable. And after the latest metropolitan housing scandals, demand for housing in the primary market somewhat fell. Citizens are still wary of investing in construction by unknown companies. In the regional center, as a matter of fact, there are actually exchanges through the sale. Someone improves their living conditions, someone through the sale solves their problems, who does not have money to pay debts for utility bills, moves to worse housing. But operations take place mainly in the secondary housing market. Moreover, they often buy it on credit. There are some advantages to this: you can get a loan without down payment, banks provide loans today for 15-20 years, which was impossible some three years ago. But I always warn customers, I suggest weighing the pros and cons. You need to calculate everything. Consider whether they will be solvent for 15-20 years, will they be able to take 700-2000 hryvnias away from their families monthly? Indeed, bank interest, although it is decreasing, still remains, by and large, high.
Today, some citizens are waiting, thinking that prices will go up. But do not forget that the more offers on the real estate market, the lower the price. In addition, the increase in utilities will force many citizens, especially pensioners, to free themselves from large areas. Indeed, today almost everything is getting more expensive. Life to ordinary nikolayevets becomes more difficult. And the increase in incomes is a rather controversial issue.
The prices of the real estate market of the city of Nikolaev were also affected by the fact that a lot of investors appeared. Our region attracts many nonresident entrepreneurs and businessmen: they want to build and open stores, bank branches.
Many initially rent real estate, try themselves in the city. Some buy immediately. Six months ago, there appeared investors with large capital who do not care what to buy and for what money (the price in this case does not matter at all), such investors are interested in a place in the regional center. And they are ready to pay big money. Visiting businessmen are interested in places in the city center of Nikolaev. And there are fewer and fewer of them. Therefore owners of the Nikolaev “housing units” and apartments on the first floors quickly responded to such rush demand.
Some prices will not add up to themselves, knowing that there are customers who buy whole yards today. Per square meter of secondary housing is sometimes asked as much as for a non-residential fund.

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