Prices for square meters in projects under construction for the year increased by 10-12% in hryvnias, CEO and Managing Partner of the development company DC Evolution Andriy Ryzhykov has told Interfax-Ukraine.
“A sharp rise in prices is not observed – there is a normal, projected growth of 10-12% in hryvnias and a little less in U.S. dollars. Depending on the quality of projects and the phase of implementation, prices in some objects have grown by 20-25%,” Ryzhykov said.
The expert named several reasons for the increase.
“Firstly, inflation, no one has canceled it. Secondly, people have money and they are ready to spend it. Oddly enough, the coronavirus year has become super profitable for many industries. Thirdly, the cost has increased greatly, accordingly, this needs to be compensated for by higher prices,” Ryzhykov said.
The expert also named the buyers’ increasing requirements for future housing.
“People, living in COVID-19 conditions, wanted a different quality of life, so projects that rely on environmental friendliness, nature, high-quality infrastructure and safe yards are ready to give installments, and do not complain about the flow of money, so they have the opportunity to raise the price,” Ryzhykov said.
The expert denied the assumption that a “bubble is inflating” in the domestic market of residential real estate.
“A bubble is an abundance of insanely cheap money that is thoughtlessly distributed, which leads to an unjustified rise in prices. In our country, growth is quite economically justified,” Ryzhykov said.
He said that one should not be afraid that the investment in the facilities under construction will not pay off.
“In most high-quality projects, buying an apartment at an early phase and reselling it at 30% more expensive before commissioning, one can earn about 15% per annum, and this is a completely normal investment,” Ryzhykov said.
