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In 2022, Kyiv developers expect 12-18% profit from constructing new buildings

The profit calculation assumes that the period of uncertainty in the primary market will last until early April. Photo: address.ua

The profit calculation assumes that the period of uncertainty in the primary market will last until early April. Photo: address.ua

In 2022, given the geopolitical and economic stability in the country, the reasonable profit of developers from selling housing will be from 12% to 18% per annum in foreign currency.

The calculation assumes that the residential complex construction cycle will last from 1.5 to 2 years, and the period of partial uncertainty in the primary market will last until mid-March—early April. During this period, the main task of the developers will be to continue constructing their own projects, avoiding any halts.

As Mykhailo Pidvysotskyi, Managing Partner of the group of companies Concept Group, notes in a commentary to The Page, in the past few years, the level of developers' profits directly depends on the quality of residential complexes, the cost of creating modern housing in demand among buyers, as well as the demand for a particular property.

Quote"This year, the cost of a square meter in new buildings is unlikely to increase by more than 10-15%. Of course, the price level will depend on such important factors as the cost of construction, as well as the general economic situation in the country, that will impact the level of the effective demand and the profit from selling a particular residential complex," the specialist explains.

Today, more than 70% of buyers in the primary housing market are interested in purchasing modern conceptual residential complexes of comfort and comfort + categories.

High-quality residential complexes with a developed adjacent territory will be the most demanded in 2022.

Quote"The high demand for quality properties among most buyers allows developers to predict the level of profit and not depend on external, both economic and geopolitical factors," the head of Concept Group believes.

According to the expert, developers should focus not only on the needs of citizens in new housing, on its correspondence with energy saving and environmental conservation trends, but also participate fully in developing transport and engineering infrastructure, and tap into creating parks, squares, and public space for all city residents.

Quote"Large companies are quite capable of spending part of the profits from selling their own residential complexes on developing the needs of the city, social or infrastructure projects. In the next 2-3 years, this is precisely the strategy of their own development due to the sustainable development of the city that may become a necessary condition for doing business for leading developers of the market," he stressed.

The expert believes that in modern development it is not enough to create a "wrapper" for the future residential complex, but it is worth focusing on the quality of construction, the creation of living space and proper transport infrastructure independently and in partnership with local authorities. It is also important to join social initiatives to preserve architectural monuments, urban environments, and the creation of new ecological living spaces.

According to the specialist, profit is not only money, but also a comfortable life for future generations. Today, taking care of the city is the added value of the image of the developer and its projects.

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