Demand for real estate in Ukraine sinking, but prices are growing anyway — expert
Growth of prices for realty of the economy class and business class in Kiev has been registered at the level of 5-7 percent each month. The announcement was made by the president of the Real Estate Experts Union Alexander Rubanov during a news conference in Kiev about analysis of the real estate market prices of Ukraine on April 21, a REGNUM correspondent informs.
The expert noted that realtors raise the prices, despite of the slowdown in demand, and explain it by the inflation. “Demand has decreased, first of all, due to the lack of banking policy on mortgage loans,” said Rubanov. The vice president of the Real Estate Experts Union Igor Odnopozov informed in his turn: “Unpredicted inflation also causes the rise in prices. There are no other premises for it. I think these processes are going to continue, because there are no real levers of preventing inflation. By the autumn, the processes will acquire certain dynamics.” According to his forecasts, the real estate prices will grow by about 10% by the end of this year.
In his turn, the head of the Real Estate Experts Union Standardization Committee Anatoly Topal announced: “Unfortunately, the trend of the slowdown in price growth rate has not reached the regions yet. At present, the leaders in rates growth are Donetsk, Lugansk and Odessa regions. Zaporozhye has shown a considerate growth. In December-January, a jump to 15-20% was registered in Lvov. The growth rates in regions are far ahead than those in Kiev. The slowest growth is fixed in Chernigov region. The south of the country is on the top of prices. Maybe, the growth rates will flatten out within half a year.” “The growth of realty prices in regions is related to the great difference with Kiev. Besides, the regions begun to develop, and businessmen started investing in them,” noted the expert.
09:38 04/24/2008
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