Ukraine Real Estate Market
The real estate market in Ukraine slowed down to a minimum. Transactions occur that have emerged even before the crisis, as well as a small percentage of transactions due to urgent need. But the massive demand for property has declined, and while No one can predict the time when the mighty hand of the market will deliver the coveted "Otomri." What are the prospects now for the market participants, and that the most right thing to do in a situation of falling demand. We will examine it example of real estate in Kharkov. Cardinal decrease in demand, is not appreciably affected by the bid price. Sellers have reduced prices in different areas by 10-20%.
Factor in reducing the demand demonstrated during the transactions actually purchased real estate. According to experts, the real decline in prices for real estate in Kharkov. ranged from 30% to 50%. Lower prices due to the already "accustomed" to two factors: the lack of actual mortgage lending and prolonged psychological factor of "waiting". These two factors may extend the state of inactivity of the market to 1-2 quarter of 2009. Banks in any case, in order to survive will be forced to return to mortgage Lending by optimizing the interest rates, taking into account the realities of the availability of money and a more rigid assessment of the client's solvency. It is expected that the launch of mortgage programs may begin as early mass in the 2nd quarter 2009 year.
Factor "expectations" of falling prices will also finish its influence. Price of apartments, varying pace, by the end of November to reach the cost of housing. The dream of a buyer's value will become a reality, even though the resistance of sellers who do not want to reduce the price. Actual sales will resume, because the condition will be reached – the price of demand and supply agreement. It should be noted that transactions on the exchange of flats to improve the conditions residence is now the main engine of the market. Citizens who have sold their homes before prices fall for the purpose of buying an apartment larger area can now make a deal without involving mortgage lending. However, these transactions were formed before the crisis, and the percentage of activity in this area is finite. Also a factor that enhances the activity of the real estate market may be, but strangely, the banking crisis. People collect their deposits from Banks may consider investing in real estate as a way to keep the savings. Among the segments of the residential real estate is a luxury most stable. The experience of the 1998 financial crisis, luxury apartments practically do not lose price during the crisis and remain liquid commodity. You can also consider buying an apartment as an investment in case of further putting it out. Rent in Odessa is always in demand, given the fact that in a huge number of schools where correspondence students regularly come from all over Ukraine. Long-term rental apartments in Kharkov will also enjoy high demand in the coming years, given the difficulty of obtaining mortgage loans. Thus, the real estate market in Kharkov, despite a slowdown in the market, characterized by the additional opportunities. And, as you know, the most profitable trades are made in a "safe water" when most market participants are influenced by the "financial crisis".