S. Kostecki: “New housing in the capital could grow by at least 15%”

С. Костецкий: «Новое жилье в столице может подорожать минимум на 15%»

The time of the construction boom in the capital has sunk into Oblivion. The volume of commissioning of apartment houses in the past year fell by almost a third, experts say. However, a tremendous amount of new housing the housing problem of the population is not decided because the majority of Ukrainians can not afford the purchase of square meters. About the situation on the Moscow real estate market, the cost of apartments in new buildings and rental housing currently in an interview with ГолосUA said the expert on the market of real estate capital Sergey Kostecki.

– Sergey, what about positive trends in the market of housing capital can now speak?

– If to speak about the good trends in the housing market in the capital, probably, all already know that since the end of last year, the primary real estate market more or less “settled” and the “bubble” on it I was blown away. That is, the probability that the market is “primary” collapse is minimal. The probability that the new buildings in Kiev will be frozen, very small, and that’s good news. Growth of new buildings in Kiev will not. In the past year has fallen, the volume of commissioned houses. I think the figure of 1 million – 1 million 200 thousand sqm per year will continue as it was before. This plus-minus normal limits of commissioning of new housing. As you know, small developers have left the market long ago, in 2009-2010, there was only a large.

– Whether the increase in price of new buildings?

– The cost of new housing grow globally, we will not. Prices will increase solely due to the fact that energy prices are rising, increasing the cost of construction, etc. by far the prices for “a primary” will not decline, but relatively speaking, a 15% growth in value of new housing per year is quite possible, maybe even a little more. It is not clear that we will have elections who will come to power, everything will change, etc.

– How they “behave” the capital’s housing market?

– The capital market is fully stable, he even goes to decrease – the more expensive the dollar is, the faster the decline. Nothing global on the market occurs and to “a primary” and “secondary” number of transactions rose. Compared to the 2016 year 2018, the number of transactions increased by 30% or more. However, the transaction price was lower. This suggests that apartments buy more, but a small area.

– What are the prices today per square meter of new housing?

– If to speak about the primary housing market in Kiev, you can find a new housing from 15 thousand UAH per square meter. The most popular segment today is about 25 thousand UAH for “square”. In average on the Metropolitan housing market the cost per square meter of new apartments in different variants start from $ 700 and up to 1200 dollars is the most popular chassis options. It is clear that housing is more expensive, there are cheaper.

– We can say that the market is consumer growth…

– Absolutely. To buy housing have become more than before.

– What is the situation in the rental market of housing capital?

– Unfortunately, the rent now feels weak given the fact that there was a boom in the market of “primary” surrendered new apartments very much, and people mostly not for myself bought, and just put the money. Therefore, the market of rental housing in the capital is constantly increasing the supply, and landlords today is very difficult to rent their homes at reasonable prices – due to the fact that “communal” is very high, and apartments are cheap.

The offer far exceeds the demand?

– Is indisputable. If in 2016-2017, the number of offers rental for one person was around 30, now almost 40, and the number is constantly growing. This is an average, but if offered very cheap housing, then of course it seems faster. A cheap option might be 10 clients, and expensive – about 50, for example.

– What is the situation with problem houses in the capital, where there is no light, water, sewer due to the lack of necessary documents?

– Slowly the issues are resolved. However, given the fact that everything should be resolved within the law, it’s very difficult. For example, residential properties Wojciechowski illegally built where there was supposed to be a garage. Clearly, it seems to be not to legislate against such housing, but from the point of view of the law, all the permits you need to obtain again. It is a long and expensive process. Wojciechowski exactly to pay for it will not, and people who have bought apartments there, the money is simply not. The state is also not interested. It is a vicious circle.

– In your opinion, will continue to build apartments small area, the so-called “birdhouses”?

Will probably build further, because people have no money. In addition to apartments a small area, our indigent population to buy. It should be understood that the very Builder of more expensive construction of the “birdhouses” than a large apartment area. Each “birdhouse” we need to bring more communications – more toilets, more sinks and baths and so on. Of course, it is much more difficult. But to build small apartments. As soon as the economic situation changed, the developers themselves will go to the construction of large apartments.

– What’s the going rent in the capital and will it go up?

– The cheapest “odnushku” can be removed from 3 thousand to 5 thousand, “kopeck piece” – from 4,5 thousand to 6.5 thousand. Prices for two-bedroom apartments near subway start from 7 thousand UAH. Offers expensive one-bedroom apartment with all the “bells and whistles” of 22 thousand UAH per month. Rent one bedroom VIP apartment for 4 thousand dollars. A lot of options. It should be noted that the rental rates in Kiev has not improved. But the prices can’t stand still, they can only grow due to the fact that the market is simply a no-win situation, it is at its minimum. In my opinion, easier even an apartment not to rent at such a miserable price. Prices for rental housing at the moment has reached a certain limit, but to increase the rent automatically will be because we are constantly expensive “communal”.

The landlords from this will not win anything. Many people even rent out their apartments to rent to tenants just pay in the winter for the “communal”, and it for anybody not a secret. In the rental market more or less stable, reduced prices in any case will not be, except, perhaps, buckwheat and then a little bit. Everything will only go up and up due to the fact that something changes in the economy, and the dollar is rising, the rates increased. I repeat that people do not earn, people will just Peter out.