According to the 2016 results, the amount of commissioned residential units in Kyiv and Kyiv region increased mostly due to construction volumes at the outskirts of Kyiv. Solomyanskyi and Darnitskyi Districts in the City of Kyiv and Kyiv-Svyatoshinskyi District in the town of Irpin (Kyiv region) had the highest construction rate.
Most of the apartments built in 2016 were bachelor apartments (consisting of 1 room). The so-called smart-format apartments (20 – 30 m2) are gaining popularity.
Availability of residential accommodation both on the primary and on the secondary market in Kyiv and Kyiv region remains stable: 350 – 370 units on the primary market and close to 90 thousand apartments on the secondary market (summary for the region).
“Despite difficult economic conditions in the country the internal retail and residential real estate markets keep developing thanks to the internal potential of the country. Today’s residential real estate market in many ways is a substitute for the closed or bankrupt banking institutions. It gives small investors a chance of capital accumulation”, says the founder and CEO of Urban Experts Vitalii Boyko.
In 2016 and during the first months of 2017 housing prices continued to fall. Yearly decrease reached 12-13% for both primary and secondary market in Kyiv, and 6% for Kyiv region. As before, Shevchenkovskyi, Pecherskyi and Obolon Districts are the most expensive ones.
One and two bedroom apartments (apartments consisting of 2 or 3 rooms) in the price range of $ 50 – 100 thousand were most popular among buyers. This is caused by general economic factors affecting spending capacity and the quality of developer’s construction, including timely completion and putting in operation, in a negative way. That undermines investor’s trust in the market as a whole.
Similar trends are observed on the secondary market. The average period of unit’s exposure time is half a year to a year and a typical discount at the time of sale is in the range of 20 to 40% of the initial price. Upscale apartments were least affected by the decline of demand. 90% of premium class apartments sold on the primary market get commissioned.