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.
Minister of Education and Science Serhiy Shkarlet says that the construction of the Presidential University on the territory of the state Expocentre of Ukraine (VDNH, Kyiv) will cost UAH 7.2 billion in three years.
“Geographically, the location is 16 hectares at Expocentre of Ukraine […] In general, the development of the Presidential University together with the biocluster and the bioclinic is a logical completion of the spatial development of the Expocentre territory, so that students have an opportunity to use all infrastructure facilities at the same time,” he said on press conference during the All-Ukrainian forum “Ukraine 30. Education and Science” on Monday.
According to the presented concept, the territory of the University will occupy 16 hectares, the total building area – 25,800 square meters.
There will be 11 campuses on the territory of the institution, including: five specialized scientific campuses, an administrative building, an apart-hotel for students, an apart-hotel for teachers, a hospital, a diplomatic service and a building with offices of foreign companies.
The minister noted that the implementation of the concept over three years with the preparation of documentation, new construction, and the primary necessary equipment will cost UAH 7.2 billion.
The Austrian HEAD Group has begun construction of a plant for the production of equipment for winter sports on the territory of the industrial park Winter Sport in Vinnytsia, the start of which was postponed a year ago due to the COVID-19 pandemic, the website of Vinnytsia City Council said.
At the same time, it is specified that the commissioning of the new plant, which will be one of the largest plants of the HEAD Group, is scheduled for 2023, it is planned to create at least 1,200 jobs.
As reported, the total investment in the project is EUR 80 million, the area of production facilities for the production of skis, ski boots and bindings is 43,000 square meters.
The total area of the industrial park Winter Sport, where the enterprise will be built, is 25 hectares.
The volume of construction work performed in Ukraine in January-March 2021 decreased by 12.8% compared to the same period in 2020. According to the State Statistics Service, in January-March, the volume of construction work performed amounted to UAH 26.3 billion. In March 2021 the seasonally adjusted index of construction products amounted to 99.7% compared to the previous month, the one adjusted for the effect of calendar days compared to March 2020 was 90.4%.
The service reported that in March 2021 from March 2020, an increase in the volume of construction work was observed in the segment of residential construction – by 8.6%, engineering structures – by 9.7%. At the same time, in non-residential construction, the decline in the volume of construction work amounted to 4.2%.
The share of new construction in the total volume of completed construction work amounted to 44.5%, repairs – 27.9%, reconstruction and technical re-equipment – 27.6%.
An increase in the volume of construction work in January-March 2021 compared to January-March 2020 was recorded in Khmelnytsky (by 40.8%), Rivne (by 29.2%), Ternopil (by 9.2%) and Kharkiv (by 4.7%) regions.
In other regions, there was a decrease in construction volumes. The most significant drop was shown by Chernivtsi (by 59.4%) and Vinnytsia (by 56%) regions.
As reported, the volume of construction work performed in Ukraine in 2020 increased by 4% compared to 2019.
President of Ukraine Volodymyr Zelensky has said that he welcomes the signing of an intergovernmental agreement between Ukraine and Turkey on housing construction for Crimean Tatars, which will allow the construction of about 500 residential apartments, including for internally displaced persons.
“I welcome the signing of an intergovernmental agreement between Ukraine and Turkey on cooperation in the field of housing construction. This makes it possible to build about 500 apartments for representatives of the Crimean Tatar people and other internally displaced persons. This is a very important humanitarian project that will bring the peoples of Ukraine and Turkey closer together,” Zelensky said at the ceremony of signing Ukrainian-Turkish documents with Turkish President Recep Tayyip Erdogan.
In addition, according to Zelensky, “further liberalization of trade and economic relations between Ukraine and Turkey is important.”
“The signing of a bilateral free trade area agreement will be able to significantly increase the momentum of cooperation,” Zelensky said.
“This is a very important step that must be taken in accordance with the national interests of each of the countries, because we agreed with the President of Turkey that the relevant institutions of our countries will conduct a very substantive audit of all controversial issues and find a mutual compromise that will open the way to signing of this important document,” the president added.
The presidents also discussed the prospects for Turkish investments in Ukraine, in particular “opportunities for large-scale privatization in the field of investments in seaports, as well as cooperation in the energy and military spheres, including aircraft construction.”
“Our goal is the implementation of specific projects, the creation of joint ventures, the exchange of experience and technologies,” the President of Ukraine said.
Volume of construction products produced by type in 2020 (mln uah)
