More than 70% of construction sites in Kiev, Lviv and Odessa continue to work, prices for the year increased in the capital by 36.1%, in Odessa by 48.4%, in Lviv by 82.7%, said the founder of M4U Vladimir Danilenko to the agency “Interfax-Ukraine”.
“During the year of war in Ukraine, real estate markets in most major cities continued to grow. The cost per square meter rose during the year in line with rising production costs, the devaluation of the hryvnia and the distance from the front line. In October 2022 the tendency has changed: the prices in Lviv continue to grow, in Kiev and Odessa have stabilized”, – said Danylenko.
According to M4U, the number of active construction in the capital today is 83.7% of the beginning of February 2022 – 185 of 221 housing estates.
At the beginning of February 2023 the average price per square meter in new buildings in Kiev was 61 thousand 234 UAH. This is 36.1% higher than it was before the Russian invasion of Ukraine, but 1.2% lower than in January. Prices were rising most actively in the summer, when most sales departments resumed their work and when the official dollar exchange rate went up. From June to September the average cost per square meter increased by 26.7%.
“Today the pace of construction work is much lower than before the war, so it does not make sense and possible for developers to often recalculate the cost of construction. Market factors for price increases are also absent,” Danilenko explains.
According to the study of M4U, the largest increase in the cost per square meter was noted in the segments of elite (+46.1%) and economy (+44.3%). The price increase in popular among buyers classes of comfort and business was 35.5% and 34.4%, respectively.
At the beginning of February 2023 the majority of real estate offers are concentrated in the price range from 34 to 54 thousand UAH/sq. m, comfort class objects prevail among them.
Traditionally the biggest number of actively built and sold new buildings, as well as apartment offers, is in Holosiivskyi district of Kiev. More than a half of them (16 out of 29 Residential Complexes) are the objects of comfort class. The second largest volume of construction is in Pechersk district, where 15 out of 26 housing estates are positioned in business class, the rest – the elite. In Shevchenkivskyi district of Kiev 24 residential complexes are under construction, most of which belong to business class. Fewer new homes are being built in Obolonskyi (11 LC) and Desnianskyi (10 LC) districts. At the same time the supply of new apartments in Desniansky district is twice as much as in Obolonsky, there is more housing in the economy class housing.
In the Kiev region at the beginning of February 2023, 204 out of 263 construction sites resumed their work a year ago (77.5%). A square meter in the suburbs of the capital on average has risen by 34.1%, to 31 844 UAH. As in the capital, the most active price increase occurred in summer, from October to February prices remained practically unchanged.
In contrast to the capital, the prices for new buildings of the comfort class rose more substantially – by 33%, to 29,992 UAH. Apartments in new buildings of economy and business classes rose in price by 30% and 30.1%, respectively. The price increase in objects, positioned in the elite class, was 28%.
Most proposals of the capital region belong to comfort and business classes, price range is 26-32 thousand UAH.
Most of the objects are built and sold in Irpen (41 LC), Sofievskaya Borschagivka (17 LC), Brovary, Gostomel (13 LC) and Bucha (12 LC). By volume of apartments for sale are leaders in Sofievskaya Borschagivka and Brovary, a few less proposals in Kryukivschyna, Irpen, Bucha.
In Lviv and the Lviv region the number of new buildings in active construction and sales is now the same as it was before the Russian invasion – 218, during the year this figure has changed slightly.
The average price per square meter for the year increased by 82.7%, to 45 706 UAH.
The majority of objects in Lviv are in the price range from 24 to 34 thousand UAH, in the structure of supply the comfort class dominates.
Thus, according to the study of M4U, the greatest price dynamics is observed in the business class, where the cost per square meter for the year increased more than twice, by 109%. In the economy segment, prices rose by 66.7%, comfort by 60.3%, and elite by 58.7%.
The largest amount of apartments in new buildings are in Shevchenkivskyi (35 LCD) and Sikhivskyi (32 LCD) areas.
In Odessa and the region a square meter in new buildings during the year of war increased by an average of 48.4%. Here are active 131 out of 180 construction sites before the war (72.8%).
Prices, like in other regions, were rising during the summer, in October the growth stopped, and in December there is even a decrease in prices, an average of 2.3% for two months.
Over the year a square meter more expensive in the segments of economy and elite – 59% and 57%, respectively. The average price increase in new buildings in the comfort class was 46.1%.
“The most interesting dynamics is in the business class: during the year the cost per square meter increased by an average of 39.5%, but it is in this class we observe the largest price decrease during September 2022 – February 2023, which was 5.1%,” – said Danylenko.
The majority of proposals in Odessa new buildings are in comfort and business segments in the price range of 24-38 thousand UAH.
The leader by the number of new buildings is Primorsky district, where now the apartments are sold in 30 residential complexes, of which 16 are positioned in the elite class. In Kievsky district 25 Residential Complexes are under active construction, 12 of which belong to comfort class.
Founded in February 2020, Ukrainian proptech company M4U specializes in the development and implementation of complex intelligent solutions in real estate development.
People’s deputies propose to the Verkhovna Rada to abolish the state registration of used cars by the trading organization in itself, said the head of the parliamentary committee on finance, tax and customs policy Daniel Getmantsev
“Together with colleagues introduced the bill N9083, which provides for the deregulation and detenalization of the market of trade in used vehicles,” he wrote in the Telegram-channel on Monday.
According to the VR website, the bill on amendments to some laws of Ukraine on improvement of wholesale and retail trade in vehicles by business entities, which are registered in the Main service center of the Ministry of Internal Affairs, was introduced in the parliament by a group of MPs on March 6.
Among the co-authors of the bill, in particular, MPs Yaroslav Zheleznyak (faction “Voice”), Maryana Bezuglaya, Eugene Bragar (“Servant of the people”), Dmitry Razumkov (unaffiliated).
“The abolition of senseless state registration of used cars by a trading organization in its own name, even if it buys them as goods for further resale, will be a pledge to withdraw from the shadow market, expand the activity of white car traders and eliminate schemes because of which the budget is underpaid taxes,” Hetmantsev wrote.
The U.S. dollar is stable against the euro and the yen in trading on Tuesday and is weak against the pound.
The market is waiting for Federal Reserve (Fed) Chairman Jerome Powell’s semiannual report on monetary policy, which he will deliver before the Senate Banking Committee and the U.S. House Financial Services Committee on Tuesday and Wednesday, respectively.
Also this Friday, the U.S. unemployment figures for February will be released.
Powell is unlikely to say anything definitive about the further pace of the prime rate hike, since the key data that will affect the Fed’s decisions during the March meeting will be released after his remarks.
“The Fed wants to see more statistical data before it makes its next moves,” notes MacroPolicy Perspectives Chief Economist Laura Rosner-Whorbaton, quoted by Market Watch.
“Powell is likely to emphasize that the Fed still has a lot of work to do to fight inflation,” she says. – The Fed’s work is not over, and the central bank will continue to do it until it does it completely.”
The ICE-calculated index showing the dollar’s performance against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona) is losing 0.11% in trading, while the broader WSJ Dollar Index is adding 0.02%.
The euro/dollar pair is trading at $1.0685 as of 8:15 a.m., up from $1.0686 at Monday’s market close.
The pound/dollar exchange rate rose to $1.2040 from $1.2028 at the close of the previous session.
The U.S. currency pair with the yen rose to 135.94 yen from 135.92 yen the day before.
The rate of Australian dollar weakened to $0.6704 from $0.6730 at the close of previous trading session.
The Reserve Bank of Australia (RBA) on Tuesday raised its key interest rate by 25 basis points (bps) to 3.6% a year. This is the tenth increase in the cost of credit since last May, the rate was raised by 350 bps in total and is at its highest since May 2012.
Statement of the Australian Central Bank, however, was less “hawkish” than in the past, notes Market Watch. RBA stated that inflation in the country, probably, has already reached its peak level, and further decisions on tightening of monetary policy will depend on statistical data.
Oil prices are rising in trading Tuesday morning.
The value of May futures for Brent on London’s ICE Futures Exchange stands at $86.42 a barrel by 7:05 a.m., $0.24 (0.28%) above the previous session’s closing price. Those contracts rose $0.35 (0.4%) to $86.18 a barrel on Monday.
The price of WTI April futures grew by $0.21 (0.26%) to $80.67 per barrel at electronic trades of NYMEX by that time. At the end of previous session the contracts value grew by $0.78 (1%) up to $80.46 per barrel.
The oil market was declining for most of the day on Monday amid weaker than investors expected forecast of the Chinese authorities on the economic growth in the country in 2023, however closer to the end of trading turned to the growth.
The statement of the general director of American Pioneer Natural Resources Co. Scott Sheffield, CEO of U.S. Pioneer Natural Resources Co. said that shale oil and gas production in the Permian Basin will reach its peak level in five to six years. That’s because the best areas of the field for drilling and production are depleted, Sheffield told Bloomberg during a CERAWeek event in Houston.
Mizuho Securities USA analyst Robert Yager drew investors’ attention to Saudi state company Saudi Aramco’s price hike for European and Asian buyers for almost all grades of oil in April. “The price of the main oil grade supplied to Asia increased for the second month in a row, indicating expectations of increased demand in that region,” Yager said.
Turkey’s opposition bloc has nominated Kemal Kılıçdaroğlu, head of the Republican People’s Party, as a candidate in the upcoming presidential election, the Sabah newspaper reported Monday.
According to it, the six parties of the opposition bloc made a statement to this effect after a meeting in Ankara.
In turn, Al-Monitor reported that the leader of the Happiness Party, Temel Karamollaoğlu, announced the candidacy on behalf of the entire opposition bloc.
Earlier on Monday, thousands of opposition supporters gathered outside the headquarters of the “Party of Happiness” to find out who will run in the elections from the opposition.
“Sabah” notes that Turkey’s Good Party leader Meral Akshener, who announced last week that she was leaving the opposition bloc, has rejoined it and also attended a meeting in the Turkish capital. Akshener left the bloc over disagreement over a presidential candidate.
In January, Turkish leader Recep Tayyip Erdogan announced that presidential and parliamentary elections would be held in Turkey on May 14.
The elections were originally scheduled for June 18, but Erdogan has repeatedly stated that the vote could take place earlier. His party has pointed out that the elections in June will coincide with the peak of the tourist season, so it would be better to postpone them.
Pre-election polls show that the battle in both the presidential and parliamentary elections will be fierce.
Western media call the upcoming elections “the biggest test” for Erdoğan in the last 20 years.
