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Ukrainian Property Market: There are Perspectives

On the basis of falling of economic situation positive events are seen, which have to influence the Ukrainian property market positively.

It was reported by Herman Panikar, vice-president of department of financial markets and investments in Ukraine of the company Jones Lang LaSalle during summit of the Institute of Adam Smith "Property of Ukraine".

According to the words of Mr. Panikar till this time in conditions of strong economic growth practically any project was going to have success. That is why a lot of low quality projects were realizing on the market. These projects were directed on getting short term high income, but being not attractive from the investment side.

Now it is impossible to get financing for such projects, as banks, investors, developers and renters start to put higher demands to proposed projects, conceptions, location. All this has to bring to improvement of quality of the realized projects.

According to his words the changes will also touch Ukrainian land market. Till this time it was too "hot". Growing competition between vendors in the conditions of decreased demand will make owners of land plots to decrease the prices for them. As well the cost of building also decreases.

Besides the companies that have the possibilities to develop in the conditions of economic fall have to obtain significant privileges in this situation. They can realize their projects in the conditions of low competition that will give the opportunity to get additional income for the invested capital.



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