A disaster in the real estate market! - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
On the commercial property market, according to...The fall in rents will cause a catastrophe for the commercial real estate market.On the commercial property market, according to Executive Director of the international consulting company Colliers International (Ukraine) Alexander Kozachenko, a global catastrophe will happen if rents will fall. Because they determine the cost per square meter in any sector of commercial real estate.Owners of construction projects, investment funds or banks - everyone who invests in real estate, primarily fear of losing money. The expert notes that the financial crisis will hook the Ukrainian commercial real estate market to a lesser extent than residential, since the major players are building at their own expense and not as dependent on Bank lending. "But the crisis is always bad, including for commercial real estate. The crisis is a fall in the value of real estate in a short period of time," says Kozachenko.On the commercial property market, according to Kozachenko, a global catastrophe will happen if rents will fall. Because they determine the cost per square meter in any sector of commercial real estate. However, according to him, the Ukrainian market is not so saturated with commercial and office premises to be looking out for. "In Kiev 100 square meters of retail space for every thousand people. In Warsaw - 700 square meters per thousand inhabitants, with all the demand," he kosachenko.At the same time, he acknowledges that the slow growth of the economy will affect the purchasing power of the population. Reduction of incomes of the population economists do not predict. It is only about the slowdown in revenue growth. "The next year forecast of 4.5%. Yes, it's bad - worse than 7%. But it's still growth," says Kozachenko.Some owners of retail chains have begun to sell their items. Leonid Rybin, head of OTP Bank, believes that in this way the investors are just trying to free up funds for further investment. It may also be related to the interest of the Western players."I keep hearing that this or that player leaves the market, however it happens all the time," said Rybin. - The question is that it is more profitable to the investor: to receive an income from rents or sell, receive funds or to invest in a larger project.Priority for banks in financing the construction, he said, will be projects that do not require large investments and long payback times. "Large multi-million projects that are typically hard to Fund.