Prices for luxury real estate in Kiev continue to fall!

Prices for luxury real estate in Kiev continue to fall!

Prices for luxury properties in the primary market in Kiev continue to decline. So, for two months of 2009 reduced the average price in the market by more than 13%. Metering market transactions - hardly implemented. This was reported in the press service of the company "Knight Frank".

According to analysts, buyers are in no hurry to acquire depreciating apartment, as expected further fall in prices. An important change was the reorientation of demand for housing put into operation, which is associated with the lowest possible risk "protracted" or frozen construction projects.

Prime residential property market for the first time demonstrated the decline in Q4 2008 (in this case, in general, the 2008 price increase was 7.8%). At the beginning of March 2009, the cost of the primary elite was $ 8550 per square meter. m, a decrease over the month by 8.2%. Since the beginning of the year prices fell by 13.1% (compared to December 2008).
In addition to reducing the "declared the bid prices" on the market there is the practice of giving individual discounts, in some cases a discount in the transaction can be up to 30% on a number of projects, payments are at a reduced rate of the dollar (1 UAN = 5.05 USD). Characteristically, when in the 4th quarter last year, developers have offered to customers in the most "hidden discounts" under the guise of New Year and shares various favorable offers, at the present time there is an open lower prices. It should also be noted that the dynamics of price reduction in the elite segment is comparable with the real estate business class: for example, in January-February prices in this segment dipped 15.2%.

According to analysts, elite residential real estate in rare cases was acquired using borrowed funds, so the lack of access to the tool investment has no direct effect on the decrease in demand in this market segment. But it triggered a psychological factor - the potential buyers expect further decline in the market.


Activation of pent-up demand will be available primarily in apartment complexes that are in the final stages of construction or in the commissioning phase - such as "Diamond", "Alpine", "Lipska Tower". The main trend today - almost all builders offer their own system of payment by installments, which are an alternative to mortgage lending.

Analysts predict that over the medium term we should expect further active development of various flexible payment schemes and various rebates. This will contribute to the following factors: "the accumulation of" pent-up demand: Potential buyers expect further correction in prices, reducing to a minimum interest in the new buildings in the early stages of construction.


It should be noted that in some cases, developers do offer unprecedented discounts, giving buyers the chance to buy real estate at very attractive terms.

The situation is most severe effects on the living objects in the design stage, and already in 2009 there will be a significant decrease in new supply. Some developers claim to freeze objects in the concept stage or total rejection of them in order to devote all available financial resources to repay loans or to current development projects more competitive. In the long term, the limited supply of luxury housing will have a positive effect: as soon as the economic situation stabilizes, the primary market of luxury homes fast enough to recover the demand.

International consulting company "Knight Frank" was founded in London 110 years ago. To date, "Knight Frank" in conjunction with its strategic partner, "Newmark", has 196 offices in 38 countries and has over 6770 professionals. The contracts of the company in 2007 amounted to over $ 700 billion in annual revenue for this period exceeded $ 704 million in the Ukraine and Russia "Knight Frank" provides a full range of agency and consulting services in all segments of the real estate market, according to