Business news from Ukraine

Business news from Ukraine

Alliance Novobud – Prices for new buildings of comfort class may grow by more than 15%

Prices for new buildings will continue to grow in 2025, in the comfort class they can grow by more than 15% by the end of the year, said the press service of the developer Alliance Novobud.

“In business class prices will remain at about the same level, plus 5-10% due to the rise in the cost of building materials. At the same time, in the comfort class prices may increase by more than 15% by the end of the year”, – says Irina Mikhaleva, the company’s SMO.

According to her, the main factors that affect the cost per square meter are a significant increase in the cost of almost all types of building materials, works, as well as the shortage and, accordingly, the growth of labor costs.

She noted that the cost of building materials, prices of transportation services, electricity are constantly growing, and during construction, electricity, in particular, is used a lot. And it becomes even more expensive when generators are used or imported e/e is purchased at a higher price.

“There is a catastrophic shortage of people who can work on construction sites, this is a consequence of mobilization processes, the shortage of personnel is increasing,” Mikhailova listed the factors that have significantly affected the market.

As a consequence, developers are forced to adjust prices. In particular, according to the results of last year, the cost per square meter of housing in the comfort class increased by about 20%.

“This year we are again likely to see the rise in the price of construction materials, our suppliers are already sending new prices, therefore, for the year the cost of new housing in comfort class will again increase by at least 10-15%, and for some objects by 20%”, – she said.

Less growth is expected in business class, one of the factors of more restrained market reaction here is dumping on the part of the secondary market. For example, last summer a large number of “secondary” objects were put up for sale at prices many times less than pre-war prices.

According to Mikhaleva’s forecasts, in 2025 the construction of suburban housing will develop more actively: cottages, townhouses, etc.

“We are also considering the option of such construction, thinking about the possibility of cottage or townhouse project,” she said.

According to the data of the portal of new buildings LUN, Alliance Novobud was founded in 2006, since 2010 the company has commissioned 32 houses, in the process of realization of 9 houses and a country house project.

 

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Commercial premises in residential complexes with area of 50-100 sq. m. are most demanded – experts

The market of commercial premises as part of residential complexes is actively developing, the highest demand is for small objects with an area of up to 150 square meters, said Ukrainian developers in a survey “Interfax-Ukraine”.

“The highest demand is observed for small areas (50-100 square meters) under cafes, pharmacies, beauty bars, and medium commercial areas (100-150 square meters) under clinics and grocery stores. Small and medium-sized areas are popular because they are easier to adapt to the needs of different businesses. Large areas (from 200 square meters) are in less demand, they are mostly occupied by supermarkets or restaurants,” the press service of KAN Development informed the agency.

The high demand for small commercial premises may indicate the high activity of small and medium-sized businesses looking for locations for coffee shops, salons, stores and offices, says Yuri Motuz, Director of Zezman Holding.

According to his data, about 58% of sales of commercial premises in the LCD in Odessa fall on objects with the area of 21-40 square meters. m. However, there is also a tendency for investors to purchase two small premises to combine into a large space (up to 200 square meters) for supermarkets, pharmacies, chain stores with warehouses.

The popularity of smaller premises is also due to their lower cost, said Anna Laevskaya, commercial director of Intergal-Bud.

“Investors are interested in commercial premises at different stages – both at the excavation stage and when the object is already ready. Everything depends on location and payment conditions. Smaller premises are sold faster because their cost is lower. Operators are actively expanding, entering new premises, and in general this segment is developing even better than the apartment market”, – she told in her commentary to ‘Interfax-Ukraine’.

According to the marketing director of DIM group of companies Daria Bedya, in general, investors’ requests to the developer to buy and rent commercial real estate as part of the LCD for the last three months have increased by 24% and 23% respectively.

“First of all, these data testify to the adaptation of Ukrainians and businesses to life in war conditions,” the expert emphasizes.

In addition to traditional cafes and restaurants, mix-format establishments are becoming increasingly popular in the LCD: a combination of cafes with flower stores or bookstores, said Irina Mikhaleva, CMO Alliance Novobud. Pet stores and grooming salons for animals are also gaining popularity.

“Owners of space make their own decision on what exactly to do. As a rule, they study the existing business infrastructure, weigh their options, studying supply and demand,” the expert explained.

At the same time, there is a tendency in the market to plan commercial space at the stage of concept creation and design of a residential complex, said Avalon’s operating director Yaroslav Vozniak.

“The builder or developer aims to form an ideal ecosystem of necessary infrastructure for apartment residents. Commercial space ‘advocates’ appeared at the level of project concept creation and subsequent design. Thus, the concept of “city in the city” and complexes with developed infrastructure appeared Long before the start of construction companies already understand what functions and business should be provided in certain places of the residential complex. Everything is for the sake of comfortable life or stay in the residential complex, for the sake of the resident,” he said.

This principle in the design of residential complexes is also adhered to in the company City One Development.

“We take into account the needs of the commercial segment at the design stage, offering a wide range of premises with different functional purpose. The most liquid commercial areas are premises with the size from 80 to 100 square meters, which are in the greatest demand among investors”, – reported in the press-service of the developer.

 

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Alliance Novobud handed over 61 thousand square meters of housing in 2024 and is preparing new projects

In 2024, Alliance Novobud (Brovary, Kyiv region) commissioned five houses in residential complexes in the capital and Brovary with a total living area of more than 61 thousand square meters.

“In 2024, we commissioned five houses in residential complexes in Brovary (Lavandovyi and Madison Garden) and Kyiv (Illinsky House clubhouse). Thus, we have built half a thousand apartments with a total area of more than 61 thousand square meters,” said Iryna Mikhaleva, CMO of Alliance Novobud, to Interfax-Ukraine.

She noted that two more complexes with an area of about 200 thousand square meters are under construction: Montreal House and Krona Park II. The developer plans to launch new projects and increase construction volumes next year.

“We are currently studying the prospects of several sites in Kyiv and the region,” said Mikhaleva.

According to her, this year the company managed to reach a more or less stable sales figure. In particular, sales under the eOselya program have increased: 80 deals have been concluded since its launch, including more than 40 in 2024.

The company named the main categories of buyers as military personnel who buy housing under the eOselya program or under alternative programs of the developer, displaced persons from other cities and traditional local buyers who improve their living conditions or buy real estate for relatives.

According to the expert, a typical buyer today is practical and rational. Important criteria for buying an apartment include the availability of shelters, underground parking lots, modern fire safety systems, and autonomous power supply systems.

In addition, some buyers prefer small apartments due to more affordable prices and maintenance.

Established in 2007, Alliance Novobud has commissioned more than 500 thousand square meters of housing: 36 houses and parking lots in the residential complexes Lesniy Kvartal, Zelenyi Kvartal, Krona Park, Madison Gardens in Brovary, as well as Illinsly House and Montreal House in Kyiv. More than 450 thousand square meters of housing are under construction, including one suburban project.