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Premium Housing Market in Kyiv - Major Trends

02 May 2016 | Monday
URE Club

Premium segment occupies a small share of the primary housing market of Kyiv. According to the up-to-date data it ranges from 7% to 12%. However, in spite of the real estate prices decline in general, the premium housing market has been remaining steady and sound. In proof of this, the number of deals on the primary market in 2015 has grown almost twice, comparing to 2014. In all, in 2015 there were 82 deals concluded, which in terms of total area of sold apartments equal to 11 364 square meters.

Unlike economy and business housing, price currency on the primary market of the premium segment is US dollar. Though, in 2015 the price for one square meter decreased in average by 18% due to the price cuts for some apartments, as well as because of new objects such as SKYLine, by Amstar Properties and Busov Hill by ZhytlobudInvest had been launched.

90% of all supply is concentrated in Kyiv downtown area such as Pechersk and Zvierynets districts, another 10% - in the historical center of Kyiv such as Podol and Golden Gate.

According to data provided by agency Kyiv Standard, which is focused on high-end property only, in 2015 prices for premium class apartments decreased on the average by 18%. Such a slow down, first of all, is caused by the quality of objects, rates of sales, original price and financial situation of the owner. Today, the average price for square meter in this segment is $3,838. However, in some cases to stimulate volume of sales the size of the discount may reach up to 30% of the asked price. Most deals range from $ 500 000 to $1 000 000 for an apartment.

In the nearest future experts from Kyiv Standard expect strengthening of existing trends. Due to the crisis and growing competition developers are made to adjust prices and bring them into compliance with demand. Also several objects of premium class are expected to be launched soon.

Among the main clients as of today are still Ukrainians. In spite of the certain interest on the part of the foreign buyers, the level of deals remain quite low thoug. However, the growth of foreign investments in construction is still possible. One can notice high activity of the representatives from Turkey, Azerbaijan, USA, Lithuania and other countries. Most of them seek land plots for real estate projects development in the city center.

Analysis of the major features of the premium segment in Kyiv was conducted by Kiev Standard Company and is based on data provided by seven residential complexes, where the company is involved in sales. In total, Kyiv Standard offers 439 apartments with total area of 56 850 square meters.

These analytical results do not include the apartments in the premium housing, which are being sold through their own sales offices.


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