DIM Group expects to increase the share of investors who make timely payments under installment agreements to 80-90% by the end of this year, while today their number is 50%, said Alexander Nasikovsky, managing partner of the group.
“Exactly half of those who bought real estate from us are not waiting for the war to end and are already fulfilling their obligations. They see that every hryvnia from their pockets is actually spent on the construction of their own home, not just a new pit. We are now working to ensure that by the end of the year the percentage of those who pay under installment agreements will be at the level of 80-90%,” Nasykovsky said in a column for Interfax-Ukraine.
According to him, the rapid resumption of construction work after a pause at the beginning of the full-scale invasion allowed for an increase in the number of timely payments under installment agreements. Thus, at the beginning of the active phase of the war, only 10% of investors paid by installments, while today their share has reached 50%.
In addition, to support and stimulate demand, DIM has developed a number of financial instruments: special terms of debt payment and early repayment, favorable exchange rate offers, and debt restructuring. In addition, the company launched a guaranteed yield program at 10% in US dollars and a trade-in program.
Despite the limited effective demand, housing prices were affected by rising construction costs, fuel prices and inflationary processes, Nasikovsky noted.
“In annual terms, we had almost 27% inflation. “Contracts and extensions, and sometimes radical changes in supply chains due to the loss of capacity of producers of a number of building materials in the southern and eastern regions and the relocation of many businesses, are also driving up the price tag. Over the past year, the weighted average cost of construction in housing increased by at least 45%,” he explained.
According to him, certain categories of building materials increased in price by 30-70%, most notably concrete, glass, plaster, wood, and iron.
In addition, the cost of labor has also increased significantly – by 37% on average, Nasikovsky added.
“Prices are growing and will continue to grow, because no one has canceled the laws of the market. Another question is what to do with the limited effective demand. In my opinion, the answer should be sought inside the market, not outside, relying solely on reparations or government support. The recovery and potential of the market will directly depend on the counteroffensive of the Armed Forces, or rather, on its results and timing. We can already see that psychologically, buyers and investors are gradually ready to return to the market if there is a coincidence in their expectations in the price-value-construction time axis – real dynamics,” the expert believes.
Founded in 2014, DIM Group consists of six companies covering all stages of construction.
To date, the group has commissioned 12 houses in six residential complexes. Seven residential complexes of the comfort+ and business class categories are under construction: “New Autograph, Metropolis, Park Lake City, Lucky Land, etc.
