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The price of housing doubles

The Antimonopoly Committee became interested in prices for Kiev housing. After the resumption of home sales by builders, the price of apartments in new buildings jumped by 7-15% compared to the end of 2006.

According to experts, by the end of March, the price will rise by at least 5%. This means that by the end of the year, the cost of Kiev apartments can once again double. The next jump in prices will be made in May, experts say
Now we can already say that the residential real estate market has come to life. According to the analysts of the construction and investment company Kyiv Zhitlo-Invest, today apartments are sold at 86 facilities. However, only in February, several developers increased the cost of square meters. m for $ 100-500 (see table). As already written by “i”, the number of residential properties sold in September 2006 decreased by half. Over the following months, one- and two-bedroom apartments of an economy class disappeared from sale, and by the end of December, the supply deficit passed to other apartments in this class. As a result, since September, the average price on the primary market in the economy class segment has risen by 20% – from $ 1.2 thousand per square meter. m to $ 1.5 thousand. But the economy class occupies up to 80% of the market and is pricing. Experts identify several reasons for the rise in price. Deputy Chairman of the Board of the development company “NEST” Sergey Ovchinnikov says about the rise in price of building materials: “The average rate of appreciation of square. m in our complexes is up to $ 200. In percentage it looks scary, but this is a completely justified figure. ” According to the executive director of the Ukrainian Construction Association Sergey Grabar, “builders” revise their pricing policy every three to four months: “Therefore, prices will always rise spasmodically – this is the law of the economy.” However, from the experience of last year, we can conclude that the market created an artificial price boom by reducing supply. According to the director of the construction company, who wished to remain anonymous, the city’s urban development policy played a significant role in raising prices: “In 2006, construction at most construction sites was stopped under various pretexts. Now builders are trying to offset the costs of officials by raising prices. ” Deputy Aleksey Kucherenko does not exclude that a certain group of people is interested in the constant increase in housing prices: “The state has eliminated itself and does not affect the current market situation”. So far, the trend of a sharp increase in prices has touched only 7% of housing, but now analysts at Kyiv Zhitlo-Invest draw attention to the fact that “in April-May, some companies promise an increase in the cost of their facilities, mainly economy class, by 2-5% “. Last year, the price increase in the primary amounted to 30-35%, and in the secondary – 70%.

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