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Fast payback projects in Ukraine will be the most efficient in terms of investment, retail property remains a leading segment in the sector and the new projects as usual will be carried out due to developer’s equity. Such conclusions were made by experts at the UREC Real Estate Summit that took place on November 22nd in the Fairmont Grand Hotel Kyiv.
Dedicated to the results of the Ukrainian real estate market for 2012 summit, was organized by a branch organization Ukrainian Real Estate Club.
The main topics of the first session were foreign investment in the Ukrainian real estate market, strategies and mechanisms to attract them, legal aspects of the work in the sector as well as influence of the macroeconomic and financial factors on this market in the country.
According to the experts, real estate sector in Ukraine still remains unattractive for the foreign investors because of high political and currency risks which, as a result, increase risks of the project.
More of the objects at this stage are carried out just due to developer’s equity and seldom due to foreign investment or proceeds of credit. Foreign investors prefer to purchase completed project in order to avoid risks transferring them to the local developer.
In turn, the lawyers positively estimate current tax code and existing legislation underlining its positive influence on the investment climate in the country. As for the negative moments they define the increased number of various revisions as well as the frequent loose interpretation of some legislative regulations «on the ground».
According to the experts, the fast payback projects will be perspective in terms of investment, for instance, economy class residential property, qualitative retail centers which are able to compete with others as well as infrastructure facilities.
Among the aspects which positively influence the investment climate in the country, the experts defined positive tendencies on the global financial markets, low inflation (within 1,7% in 2012 and 4,6% in 2011), increased number of the tourists (this year their number has increased by 2,5 times, it meant, to 3 million people) and developed infrastructure (the result of EURO–2012).
The speakers of the first session were Oleksiy Feliv, BEITEN BURKHARDT, Gregory Krasnov, Platinimbank, Maxim Chukhray, Prominvestbank, Roman Nasirov, Renaissance Capital, Ruslan Magomedov, Astrum Capital, Erik Nayman, Capital Times and Philippe Beurtheret, Immochan Ukraine. The moderators of the first panel discussion – Igor Kabuzenko, ICON Privat Equity and Yuriy Vitrenko, AYA Capital.
The second session of the UREC Real Estate Summit was dedicated to the result of the work in the certain segments of the real estate market as well as to the collaboration of the Ukrainian banks with developers.
According to the specialists, the leader of the sector in 2012 was a retail property developing faster than others and still remaining perspective for investment. However, an optimism about the further retail development isn’t typical for all players of the real estate market. Some of them define only three Ukrainian cities perspective for realization of retail centers, among them are: Donetsk, Odessa and Kiev.
Special attention was given to the introduction of the new office spaces to the market. According to the experts it can oversaturate the market and cause the decline of the rental rates in the segment.
Talking about a residential property market, experts admitted the almost complete disappearance of the new offers in business class segment, price rises on the elite housing primary market in Kiev as well as increase of a part of the primary property in the customer demand structure.
The speakers of the second panel discussion were Eugeniy Kharlan, Oschadbank, Irina Skorohodova, Alfa Bank, Oleg Salmin ÕÕI Century, Alexey Chernyshov, AVEC GROUP and Vitaliy Boyko, UTG. The moderators of the session were Yaroslava Chapko, Knight Frank and Valeriy Kirilko, Tiko Construction.
The participants of the summit held by URE Club were the first people of the leading Ukrainian and international companies: developers, representatives of the investment structures, banks, law firms and other companies that constitute a part of the real estate market infrastructure.
Photo Report on the outcome event
Releated links:
Rental price for the high-class offices in Kiev goes down and the companies leave central business district | 13.11.2012
Revival of the Ukrainian property market may begin no earlier than the second half of 2013 | 06.11.2012
