Óêð
Eng
On November 29th the branch organization Ukrainian Real Estate Club held its first event of the year – special press breakfast on the topic: «Tendencies of the Ukrainian real estate market in 2013». The participants of the event were top managers of the banks, development and consulting companies as well as professional journalists. Such a format enabled the experts of the segment to outline basic tendencies in the residential, retail and office segments as well as to forecast the future investment development of Ukraine.
As experts noticed, the retail property will remain the leading segment on the market. However here, like in other business areas of Ukraine, the international financial environment will influence the further development of economic and political situation inside the country.
According to UTG, the supply of retail GLA in Kiev has increased by 112 ths. sq.m and as for rental rates, they have grown by 5-10%. At the same time, the vacancy in professional shopping malls made up less than 1%. As Partner of UTG Vitaliy Boyko noticed: «the number of potential tenants has increased and more new brands have entered the Ukrainian market. Accordingly, all tendencies of the segment indicate the positive situation on the market».
Estimating prospective formats of the retail segment, Chairman of the board at AVEC Group (Kyiv) Aleksey Chernyshov holds a restrained optimism. He underlined: «the format of large-scale regional retail centers located in Kyiv and in million cities is becoming attractive in terms of investments. Such cities have a big enough consumer market which still requires qualified shopping centers and modern retail chains».
Another situation is in the office real estate segment. The UTG’s data say that 190 ths. sq.m were put into operation in 2012. According to the experts the capital market can exploit only 90 ths. sq.m during the year. Consequently the number of new Kyiv’s business centers makes up a two-year supply. «Taking into account vacant supplies which were up to 2012, office property segment is one of the most oversaturated today – Vitaliy Boyko notes, - as a result such a situation influences its rental rates and level of vacancy». Thus, the part of vacant spaces in business centers of Kyiv amounts to 19% and rental cost decreased by 5-10% on average.
However, according to General Director at Midland Development Elena Shulyak, «if one pays attention to the tenants and fulfills all their requirements which can’t cause significant expenses but increase efficiency of business space, any office project will be successful». Experts say that tenants are interested more in high adaptability, equipping and sustainability than in central business district location of the office.
The topic of residential property also was touched during the press breakfast. The professional developers think that housing market in Ukraine has become more civilized. The prices of the secondary housing are gradually coming down; supply of the primary market has become more qualified and meets the requirements of the consumer (small apartments, location near developed infrastructure etc.). The experts believe that exactly such projects with affordable apartments will be interesting in terms of investments in 2013.
On the other hand, Konstantin Bravo, Commercial Director at NEST («Nedvizhimost Stolitsy») drew attention of the URE Club press breakfast participants to the fact that «high competition in the economy segment makes developers to face law level of profitability. So, exactly business class apartments will be prospective for local developers. Potential purchasers of such apartments are less affected by crisis and consequently, demand for apartments of business class is always stable».
As for prospects of investment market development, the speaker of press breakfast, General Director at XXI Century Oleg Salmin said: «The last 2012 hasn’t changed significantly the investment attractiveness of the Ukrainian objects for foreign investors, however their interest will grow. One of the most important aspects to attract international capital remains the clear financial activity of the development companies as well as intended use of the attracted capital». The experts think that Ukrainian banks may be involved in large development projects being in the pool of several investors and paying attention just to the small objects.
At the end of the meeting Vice President, Investment Director for development projects at Alfa Bank Irina Skorohodova noted: «Exactly such events as URE Club press breakfast help developers and banks to understand each other better and build up cooperation between them that favorably influence the situation and development of the Ukrainian real estate market in general».
The press breakfast on the topic: «Tendencies of the Ukrainian real estate market in 2013» held in open atmosphere of the restaurant «April». The moderator of the press breakfast was Managing Director at GFive Development Vladimir Bandura. The participants of the event were the representatives of the following companies: Backer&McKenzie, XXI Century, Alfa Bank, NEST, Prominvestbank, AVEC Group, EASTGATE DEVELOPMENT, ESTA Holding, Midland Development, UTG and many others.
Photo Report on the outcome event
Releated links:
Business lunch URE Club with mass media | 29.04.2010
