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Following Kyiv, prices for apartments in the regions stabilize

Photo: Shutterstock

Photo: Shutterstock

Housing prices have risen the most in Sumy in 2021

In Kyiv, developers will keep prices at the current level and are unlikely to risk raising them until the end of the year, given the imposition of the lockdown and the market decline at the end of the year. This was stated by Yuriy Pita, President of the Association of Real Estate Specialists (Realtors) of Ukraine (ARESU).

On the contrary, subject to 100% payment, investors can most likely count on discounts of 10% or more. According to the specialist, a decrease in demand and possible problems with construction work are expected in the housing market.

Considering the quarantine restrictions, the situation with prices in the regions is also stabilizing, following Kyiv.

In particular, in Bila Tserkva, the price rise in 10 months for new buildings is on average 6%—the growth is 2.5 times less than in the capital. According to the ARESU, at the beginning of November, only 9 new buildings are being sold on the primary market. Depending on the class of the property, the price varies from 15,000 UAH/m2 up to 43,500 UAH/m2.

Quote"The greatest demand—up to 60%—is concentrated on small one- and two-room apartments in brick buildings," Valerii Rabenok, Chairperson of the ARESU branch of in Bila Tserkva, notes

There will be no special price shifts in the primary market till the end of the year. "From November to December 2021, prices will remain stable. At the same time, the price dynamics in 2022 will depend on the epidemiological and economic situation. But next year it is unlikely that big price hikes are possible," Rabenok explains.

The situation in the Bila Tserkva secondary market is also quite stable.

"During the year, prices in the secondary market have increased by almost 12%. 1-room apartments with an area of up to 40 m2, mainly in the houses built in the Soviet era, are most popular," he says.

In Sumy, following the results of 10 months, the cost of housing in the primary market increased by an average of 25-30%. According to Antonina Panok, the Head of the Sumy branch of the ARESU, more than 70% of transactions in the primary market account for 1- and 2-room apartments.

Quote"In the past few months, the popularity of 2-room apartments has increased by 10-15%, and the number of transactions in the segment of 3-room apartments is also gradually increasing," the expert notes.

According to Panok, by the year-end, a slight decrease in demand within 20% is possible because of the quarantine.

Quote"The pandemic and the related new severe restrictions will increase the number of the deferred agreements and 'freeze' prices for new buildings. However, by the spring of 2022, the deferred demand will be fully realized. At the same time, the pricing policy of developers in most cases will be based solely on the level of demand. Consequently, prices for the new buildings will be stable within 3-4 months," the ARESU representative believes.

The situation in the secondary real estate market is similar to the primary one. Since the beginning of the year, the cost of apartments, depending on their area, condition and location, has increased by 15-20%. The average cost of the purchased apartments in 2021 held steady at $27,500. The cost of one-room apartments ranges from $18,000 to $27,000, two-room apartments—from $23,000.

"In 2021, the number of sold two-room apartments increased compared to one-room apartments. The number of sold 3-4-room apartments is gradually increasing. First of all, this is due to the price rise for utilities," she believes.

According to the expert's forecast, there will be relative price stability in the secondary market of Sumy until the end of the year.

Quote"Correction of prices and their increase is possible only within 1.5-2% for the most popular 1-room apartments. However, such changes will not significantly affect the pricing policy of the housing sellers," Panok believes.

Since the beginning of the year, the cost of housing in the primary market in Ivano-Frankivsk has grown by an average of 15%. The cost of apartments in new economy and comfort class buildings is about 10,000—11,000 UAH/m2, the price in business class is 11,000—13,000 UAH/m2, premium-class apartments cost from 12,000 UAH to 15,000 UAH per m2.

According to Viktor Furdiiaka, the Head of the city branch of the ARESU, since the beginning of October, the demand for new buildings has decreased by 5-7%, resulting from the economic and epidemic situations in the country.

Quote"Over the past month, activity in the primary market has somewhat slowed down. On the one hand, the unpredictability of the situation in the country restrains buyers who postpone the purchase of housing for an indefinite period. That is why price stability reigns in the primary market of Ivano-Frankivsk," the specialist stresses.

According to him, in the next 3-4 months the price situation in the primary housing market will not radically change. However, closer to the spring of 2022, in the context of a stable economic situation and a decrease in pandemic risks, further growth in the cost of square meters should be expected.

"The cost of construction is increasing almost monthly. Therefore, it is possible that prices will continue to rise in the primary market of Ivano-Frankivsk in 2022," Viktor Furdiiaka believes.

At the same time, in the secondary housing market there was a shortage of supply from July to October in the segment of small-sized apartments built in the Soviet era and houses built in the 90s (value of up to $30,000). operation of new buildings. There was also a shortage of apartments with an area of 40—80 m2 in the newly commissioned buildings.

During the year, the cost of apartments on the secondary market in houses built by 2000 increased from 2 to 10%, depending on the location, condition of the house and the apartment, and their area. However, the price of housing in houses built between 2010 and 2020 increased from 5% to 10%.

"The largest price rise was recorded for one-room apartments in relatively new buildings, both in the vicinity and in the center of the city. From January to October, such housing has risen in price by an average of 10%. In this most popular housing segment, demand is 50% higher than supply, which may induce sellers to gradually increase the value of apartments for sale. Although an excessive price that does not meet buyers' expectations may have the opposite effect—prices will drop to the September-October level," the expert says.

The secondary market of Ivano-Frankivsk is in a state of stabilization that will last at least several months, Furdiiaka summed up. According to his forecast, in the next 3-4 months maximum price fluctuations are possible within 1.5-2%.

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