Sales of new commercial vehicles (including heavy vehicles) in July increased by 11% compared to July 2019, to 1,163 vehicles, reports the Ukrautoprom association.
According to the association, the July sales result is 53.3% higher than the June one of the current year.
This increase in sales is primarily due to the results of the rating’s leader – Fiat, whose primary registrations grew 2.7 times by July 2019 and 2.3 times compared to June of the current year, to 257 units.
According to the data provided by Ukrautoprom, Peugeot moved to the second position in July from the fourth in June, pushing aside Renault. The demand for Peugeot vehicles doubled both compared to July 2019 and June 2020, to 164 units.
Renault has lost 38.6% of sales, ending the month with 127 registered vehicles (20% more than in June 2020). Mercedes-Benz came fourth (from the 11th position in July of the previous year) with 80 registrations against 43.
Ford entered the top five market leaders, having sold 72 vehicles in Ukraine – one unit more than a year ago.
Among the Ukrainian brands, only ZAZ entered the top twenty best-selling commercial vehicles with sales of 11 vehicles against 28 units in July 2020.
According to the statistics of the association, the market of buses of all classes in Ukraine in July decreased by almost 20% compared to July of the previous year but increased by 7.4% compared to June 2020, to 101 units.
The first place, as well as the last month, is occupied by Otaman buses of Cherkasy Bus Plant with the registration of 43 buses compared to 24 in July of the previous year and 45 buses in June of the current year.
Ford takes the second position climbing from the fourth in June, the demand for buses of this brand increased to 25 units – from 19 units in July 2019 and 10 units in June 2020, and the Ukrainian Etalon, which takes the third position, sold 10 buses comparing to six and 11, respectively.
The Ukrainian Ruta was fourth (five units against eight a year earlier), Hyundai was fifth with five buses (and none in July 2019).
The total supply in the commercial real estate market will reach 633,000 square meters by 2020, which is 1.5 times more than now, expert in the field of commercial real estate Ihor Zabolotsky has said. “At the end of 2018, the vacancy rate dropped to 3.8%. This is an extremely low level not only for Ukraine, but also for the world. In 2017 there were practically no new projects, 8,000 square meters were commissioned. This year the figure is more significant: taking into account those objects that are to open in December 2018, the figure will reach 85,000 square meters. But these are mostly small objects with an area of 10,000-20,000 square meters, and the appearance of each of them could not affect the market as a whole. The total supply over the next two years could exceed 600,000 square meters. The total stock might increase by more than 1.5 times,” Zabolotsky said at a press conference in the Interfax-Ukraine agency.
In particular, he noted that the opening of the River Mall shopping center is scheduled for the second quarter of 2019 and the Retroville trade center for the third quarter of 2019, as well as the opening of the Blockbuster shopping center was postponed to February 2019. According to the expert, the success of the projects will be determined not by the level of rental rates, but by the purchasing capacity of the population in 2019.
The market cost of some commercial property could double in next two or three years, Managing Director of Colliers International in Ukraine Oleksandr Nosachenko has said. “The current value of assets is very cheap. Market players in the next two to three years expect an increase in the market value of commercial real estate. If nothing dramatic happens to our country and economy, in particular, in three years, in some cases we can get the cost twice as high as the one paid by buyers,” he said at a press conference at Interfax-Ukraine.
According to the expert, given the relatively low prices for assets, now it is a good time to purchase high-quality real estate: some investors are in a hurry to close deals. Nosachenko said that in the medium and long term, the share of foreign investors in the Ukrainian market will increase. At the same time, international investors mostly look at the finished facilities, which value is below the market value, with a good location, with a stable cash flow, and quality tenants with long-term contracts.
“This is a good time to purchase the best facilities. This year very high quality facilities were sold. There will be no appearance of many good facilities, the market is very limited. I do not see the tendency for banks to get rid of high-quality collateral property. Today it is not so easy to find a good and problem-free facility, which tends to increase its value,” the expert said.
According to Colliers International, among the main facilities sold in 2018 is Horizon Park BC (GLA is 69,000 square meters in Kyiv), Sky Park SEC (GLA is 30,000 square meters in Vinnytsia), warehouse complexes located at 8 and 68, Obyizna Street (Brovary, Kyiv region), an office building located at 98, Velyka Vasylkivska Street (GLA is 9,000 square meters in Kyiv), an office building located at 29, Kovpaka Street (GLA is 6,300 square meters in Kyiv), an office building located at 100, Velyka Vasylkivska Street (part of the Toronto business center, GLA is 5,500 square meters in Kyiv).
The company also said the process of selling one of the largest and best retail properties – the Ocean Plaza shopping and entertainment center (GLA is 72,200 square meters) – is one of the events significant for the investment market.
Dragon Capital Group remains the largest real estate investor in the Ukrainian market.
