Alyona Piskunova, conceptologist at DIM Group of Companies
Three things that really help developers sell apartments in new buildings today
Since the beginning of the full-scale war, Ukrainian developers in the primary real estate market have faced two extremely difficult challenges. The first was to survive and maintain their positions, i.e. the team, to support those who went to the army to defend the country, to defrost the sites in time and not to lose the pace of construction. The second is to survive in conditions of limited demand, and in particularly difficult periods of almost zero interest in buying apartments.
We all remember well the first half of 2022, then the period of massive rocket attacks in the fall and winter of last year – when the volume of demand fell significantly, and the number of transactions was measured in units, at best dozens of apartments, provided that you build liquid projects on time and quickly and the concepts of the residential complex fully satisfy the buyer’s request today.
Fortunately, since the spring of 2023, to be precise, since the end of May, after the end of the missile terror on the capital, the capital’s real estate market has been experiencing a period of restrained optimism: sales in the comfort+ segment, provided that the project is actively under construction, are growing by 5-6% per month. For example, we have managed to return more than 40% of the pre-war sales volumes.
However, there are three things behind these figures. First of all, there is noticeable construction activity on the sites, which is now one of the priority selection criteria. Over 95% of buyers, according to our observations, over the past six months, have cited construction activity and the developer’s reputation as important for making their final choice.
The second key point is the liquidity of the format and complex. It is important for people to see not imaginary renders, but the concept of living space, where zoning and filling the territory with functions and infrastructure meets all their everyday needs, and planning solutions are ergonomic and comfortable for life.
The most liquid formats are multifunctional cluster, eco-city and multifunctional complex with the concept of a 15-minute city. The most popular are the European layouts from 45 to 85 sq.m., necessarily a large kitchen-living room of 20 sq.m., isolated bedrooms, and two bathrooms for 2-3-bedroom apartments.
And the third point that contributes to the gradual recovery in demand is the company’s willingness to make concessions and offer flexible purchase terms. In fact, today, sales are sufficiently high for those who, thanks to a sustainable financial model, can offer a long-term installment program of 3 years or more.
Understanding the request for financial leverage from the developer, we have developed an installment program for 7 years at 0%. At the same time, the so-called “stability year” with fixed minimum payments ($300/month for 1K apartments;
400$/month – for 2K apartments; 600$/month – for 3K apartments), and then installments without overpayments for up to 4 years. Down payment from 30%.
Such programs are becoming a financial incentive to buy today and increase the volume of effective demand. For the buyer, this is also a signal that the developer’s financial model is stable enough for the company to be ready to share the burden with him. After all, it is clear that it is more profitable to sell for 100% payment and receive funds here and now. However, challenging times require difficult but significant decisions: today it is extremely important to support each other and be in partnership with the buyer.
Commissioning of housing in Ukraine in January-September 2023 increased by 13% compared to the same period in 2022 – up to 5 million 451.7 thousand square meters, the State Statistics Service reported.
According to the report, since the beginning of the year, 3 million 258.4 thousand square meters of housing (59.8% of the total) have been put into operation in cities, and 2 million 193.3 thousand square meters in rural areas.
In total, 66.5 thousand apartments were commissioned during the reporting period, which is 9.2% more than in January-September 2022. At the same time, 16 thousand apartments were commissioned in single-family houses, 50.5 thousand – in apartment buildings.
In the first nine months of the year, most housing was commissioned in Kyiv region (over 1 million square meters, 18.5% of the total), Kyiv (837.9 thousand square meters, 15.4%), Lviv region (542.3 thousand square meters), Vinnytsia region (506.8 thousand square meters), Ivano-Frankivsk region (402.3 thousand square meters) and Zakarpattia region (263.1 thousand square meters).
According to the statistics, the growth in housing starts was recorded in all regions of Ukraine, except for five regions. Kharkiv region showed the largest year-on-year increase, with 186.4 thousand square meters commissioned in January-September, up 385.8% year-on-year.
At the same time, five regions recorded a drop in the volume of housing commissioned. Thus, 217.6 thousand square meters were commissioned in Odesa region, which is 57.2% less than in January-September 2022, 105 thousand square meters in Poltava region (-46.8%), 7.9 thousand square meters in Zaporizhzhia region (-25.3%), 47.2 thousand square meters in Chernihiv region (-21.6%), and 79.5 thousand square meters in Zhytomyr region (-11.1%).
The data are given taking into account the housing commissioned in accordance with the temporary procedure for commissioning houses built without a building permit, the State Statistics Service reminds. Also, the information is given without taking into account the territories temporarily occupied by the Russian Federation and part of the territories where hostilities are (were) conducted.
As reported, the commissioning of housing in Ukraine in 2022 decreased by 37.8% compared to 2021 – to 7 million 110.2 thousand square meters.
The synchronization of the Ukrainian and European power systems has been successfully completed, ENTSO-E, the network of Continental European transmission system operators, has announced.
“The transmission system operators of continental Europe are pleased to announce that Ukrenergo, the Ukrainian system operator, has achieved compliance with the key technical requirements necessary to ensure a permanent connection between the power systems of continental Europe and Ukraine,” ENTSO-E said on Tuesday.
“ENTSO-E welcomes the new level of cooperation between the operators of continental Europe and Ukrenergo. This development not only strengthens regional energy security, but also contributes to a more integrated and more efficient energy market,” said Zbignek Boldis, President of ENTSO-E.
According to him, it also emphasizes the ongoing efforts to ensure a resilient and integrated electricity grid and to promote cooperation between European transmission system operators.
As noted on the website, emergency synchronization with the European power system took place on March 16, 2022, and since then Ukrenergo has made extraordinary efforts in difficult wartime conditions to achieve full compliance with the operating rules.
“For its part, Ukrenergo explained that the technical conditions – the Catalog of Measures – were enshrined in the Agreement on the Conditions for the Future Interconnection of the Power Systems of Ukraine and Continental Europe, signed in 2017. The catalog contains more than 200 technical measures in 9 areas. All of these measures are an integral part of the Framework Agreement on the Synchronous Area of the Continental Europe (SAFA), to which Ukrenergo also joins.
“We highly appreciate today’s decision, and I am confident that this achievement will help to significantly increase the flexibility and reliability of our network, as well as create the preconditions for expanding cooperation. This is the result of many years of hard work, which became especially challenging after the outbreak of a full-scale war. We are grateful to ENTSO-E for its constant support and trust throughout this time,” said Volodymyr Kudrytskyi, Chairman of the Board of NPC Ukrenergo, as quoted in the company’s release.
As reported, on the same day, ENTSO-E decided to expand the technical conditions for electricity imports from Europe to Ukraine and Moldova from 1200 MW to 1700 MW.
President of Ukraine Volodymyr Zelenskyy has signed the law on the state budget for 2024.
According to the card of the relevant draft law No. 10000 posted on the website of the Verkhovna Rada, the document was returned to the parliament with the signature of the head of state on November 28.
As reported, on November 9, the Verkhovna Rada adopted as a whole the draft law No. 10000 on the state budget for 2024.
INVESTMAN UKRAINE is a place of strength and partnerships for all interested in the business space of Ukraine, as the main place of Investmen, where everyone contributes to the development of the investment sphere, leading industries and the economic front of our country as a whole.
When – 30.11.2023 (Thu)
Where? – Parkoviy ECC (Kyiv)
What time? – start of registration 10:00,
start of the event program at 11:00
networking and informal part from 17:00.
It will be held in the format of the First Investment Exhibition, which will include:
– Expo-zones of investment companies and projects by areas;
– Topical panel discussions and QA sessions in separate mini-halls;
– Lots of networking and socializing;
– Drawings from partners;
– Charitable initiatives
– Setting a Ukrainian Record.
Sponsor of the event in the direction of technological projects – “Brave Inventors“.
Partner of the event on land investments – “ZemInvest“.
Let’s create together a productive synergy of business activity and trend actualization, negotiations and networking, providing or attracting investments, successful contracts and partnerships, expert opinions and exchange of experience in an unforgettable atmosphere of community of the most courageous investors of Ukraine.
THE NUMBER OF VISITORS IS LIMITED BY SECURITY CONDITIONS
Don’t hesitate and choose your best participation format – https://www.investman.com.ua/doluchitisya/.
Media partners: Interfax-Ukraine, open4business, Experts club, Fixygen
Modern diagnostic methods, new NCCN guidelines, achievements of world medical science in oncology, real cases and practices of the Ukrainian medical community – all these and other important issues were discussed at the largest event of the year in the field of oncology – the annual 4th Oncology Congress “Up-to-date 4.0 + Molecular Meetings”.
This year’s oncology congress was held in fruitful cooperation of leading medical institutions with deep expertise in oncology. The event was organized by the Ministry of Health of Ukraine, the Ukrainian Society of Clinical Oncologists (USCO) – OncoHUB, the National Cancer Institute, CSD LAB Medical Laboratory and the Global Medical Knowledge Alliance (GMKA).
The event took place on November 23 and 24 in the capital of Ukraine, at the Parkovy Exhibition and Convention Center, and brought together more than 800 doctors of various oncology specializations from all over the country.
The event was opened by Viktor Lyashko, Minister of Health of Ukraine, Olena Yefimenko, Director General of the National Cancer Institute, Oleksandr Dudin, Managing Partner of CSD LAB, and Andriy Beznosenko, Chairman of ONCOHUB.
The main thesis of Viktor Lyashko was the statement about the need to provide high-quality and modern medical care that meets the current challenges of Ukraine. After all, a full-scale invasion unfortunately leads to an increase in the number of cancer patients. Therefore, there is an urgent need to update not only clinical guidelines, standards and protocols, to develop technical equipment of medical institutions, but also to work together to improve the knowledge and competencies of doctors, to attract best practices and methods.
“The conference “Up-to-date 4.0 + Molecular Meetings” is our new step towards an even larger-scale realization of the common goal of CSD LAB Medical Laboratory and our colleagues at OncoHub: to unite doctors to share knowledge, advanced technologies, experience and new opportunities. They should help the doctor to be more effective, and the patient to get a chance to survive and improve the quality of life. And this is very important, because despite the availability of opportunities for accurate diagnosis and treatment, Ukraine still remains in the top countries in terms of cancer mortality,” said Oleksandr Dudin, Managing Partner of CSD LAB Medical Laboratory.
“The event is aimed at bringing Ukrainian doctors closer together, giving us the opportunity to share new research and personal experience. For the first time, we have expanded the horizons of our program to include molecular oncology, which is aimed at a deeper study of the molecular aspects of oncology. This is a unique opportunity for the medical community to gain insights into current trends and interact with recognized experts. Also, for the first time, a section on radiation oncology was held for a comprehensive multidisciplinary approach in the daily clinical practice of oncologists,” commented Andriy Beznosenko, Head of Oncology Hub.
This year’s program “Uptodate 4.0 + Molecular Meetings” included more than a hundred reports from leading doctors from Ukraine, the USA, France, Latvia, Armenia, Slovakia, Germany and Israel. The conference brought together surgeons, clinical oncologists, pathologists, geneticists and public activists, as well as all those who want to be more knowledgeable about oncology.
“To realize our goal of raising awareness about timely diagnosis and personalized treatment tactics, we need to be in constant communication with the medical community and the public. And, most importantly, to encourage people to take care of their health in time to prevent diseases or detect them at early stages with a much higher chance of successful treatment. And CSD LAB provides a full range of diagnostic solutions that are required for this, in accordance with international protocols,” added Oleksandr Dudin, Managing Partner of CSD LAB Medical Laboratory.
