Business news from Ukraine

Demand for townhouses and cottages in Kyiv fell by 60-100%

As of October 01, 2022, according to the RealExpo consulting company and the database of the suburban real estate portal www.zagorodna.com, there were 86 townships in Kyiv compared to 84 objects in January.

For the same period in 2021, 16 new projects appeared in Kyiv.

The number of cottage townships in Kyiv,
January-September-2022
(according to www.zagorodna.com)

Kyiv area                  January    September
Goloseevsky                   19               19
Darnitsky                        14               15
Desnyansky                    6                 6
Dneprovskiy                   2                 1
Obolonsky                       4                4
Pechersky                        3                3
Podolsky                          3                3
Svyatoshinsky                6                8
Solomensky                    24              24
Shevchenkovskiy           3                3
TOTAL                            84              86

According to the director of the RealExpo consulting company and the head of the www.zagorodna.com portal, Viktor Kovalenko, “2 new projects appeared on the cottage construction market in Kyiv during 9 months of 2022: 1 in Goloseevsky and 1 in Darnitsky districts. In the private sector above these areas, new projects have appeared on small plots from 10 to 20 acres. These are townhouses for 4-12 households. The adjacent plots to the townhouses are also small: from 0.7 to 2 acres. The area of ​​households in new projects ranges from 85 to 194 sq.m. This is basically a comfort-class housing.

The first place in terms of the number of townships belongs to the Solomensky district – 24 townships.
The second place in terms of the number of towns is Goloseevsky district (19 towns).
The third place belongs to the Darnytsia region (15 towns).

Types of real estate in cottage townships in Kyiv

in 60 cottage villages the preferred type of real estate is townhouses against 50 in January. The proportion of townhouses is 69.76% of all townships. The leader is Solomensky district (23 projects);
in 2 towns – quadrexes against 2 in January. The proportion of quadrexes is 2.32% of all townships. There is one town with quadrexes each in the Solomensky and Goloseevsky districts;
in 8 towns – duplexes against 6 in January. The share of duplexes is 9.3% of all campuses. The leaders in duplexes are Goloseevsky and Darnitsky districts (2 towns each);
in 27 towns – cottages against 24 in January. The share of cottages is 31.39% of all campuses. The leader is the Darnitsky district (8 towns with cottages);

Types of real estate in cottage townships in Kyiv
(according to www.zagorodna.com ), January-September-2022

Type                January    September
Quadrex               2                   2
Duplex                 6                    8
Cottage                24                  27
Townhouse        50                  60

Readiness in cottage townships in Kyiv

The leader in terms of readiness are built towns (65.11%), followed by towns under construction (25.58%) and projects account for 9.3%.

56 cottage villages built compared to 50 in January;
22 campuses under construction compared to 24 at the beginning of the year;
8 projected settlements against 10 in January;

Championship in built towns near the Solomensky district (17 towns).
Championship in towns under construction near Goloseevskogogor district (7 towns).
Goloseevo is ahead in terms of projects (4 campuses).

The degree of readiness in the cottage townships of Kyiv
(according to www.zagorodna.com ), January-September-2022

Status                       January    September
Built                               50                56
under construction     24                22
Project                           10                8

“Frozen” cottage villages in Kyiv
Currently, construction has been halted in Kyiv at 9 sites: Karpatsky, Bolgarsky project, Townhouses on Trakhtemirovskaya, Nizhnie Sady, Villas on Grabovsky, Cottages on Osokorki, Townhouses on Metrological, Pushcha Residence”, trans. Pine 18-22.
This is 30% of the total number of cottage settlements under construction and projected.
Most of the frozen construction projects are located in the Goloseevsky district (4), 2 projects in the Darnitsky district and 1 construction site each in Desnyansky, Obolonsky and Solomensky districts.

Sold cottage settlements in Kyiv
In 40 cottage villages in Kyiv, construction has been completed and all households in the towns have been sold. This is 46.5% of the existing campuses.

What and where is being built in Kyiv? Cottages and townhouses in cottage towns in Kyiv have an area of ​​30 sq.m in townhouses “Bulgarian project” and reach 800 sq.m in villas in the “Italian quarter”; located on land plots ranging from 0.06 to 62 hectares and have adjacent plots from 0.1 to 50 acres, designed for 3-295 households.

They are built from gas blocks, bricks with insulation and connected communications.

Expert opinions
We asked developers how the demand in cottage towns has changed since the outbreak of hostilities and how prices have reacted to the war.

Vladimir, project manager of Sosnovy Bor duplexes, commented on the situation on the market of cottage townships in Kyiv:

“Compared to pre-war, the demand for duplexes in our project has fallen by 100%.
Buyers are waiting for the market to crash and prices to fall in order to invest profitably.

There is a lot of pent-up demand. People call and look at real estate. Until the end of the war, they postponed the purchase, but plan to return to this issue later. People are afraid to invest in houses during the war.

Since the beginning of hostilities, building materials have risen in price, and some of them, like glass, aerated concrete, metal of some brands, are in short supply.
Builders are also in short supply. Many went to the front.
In many projects, there will be a delay in the commissioning date of 3-5 months because of this.
The cost of construction in hryvnia increased, while in dollars it remained at the same level.

The cost we have before the war and is now declared in dollars at the exchange rate. The cost in dollars decreased by 10-15%.

The representative of the developer in the Happiness CG, Timofey, said: “in our project, demand fell by 90%. There’s just a lot of pent-up demand. The prices were denominated in dollars. Prices have decreased by 5-10%, but in each case, individual conditions are discussed.”

Sales manager of Montreux Townhouses Alexander reported that “demand in the project fell by 90%. Prices have dropped by 15%.

Andrey, a representative of the builder in OldStories townhouses, said: “In our project, demand fell by 60%. The prices were denominated in dollars. Prices have not changed.

Conclusions:
Demand in cottage townships in Kyiv, according to experts, has decreased by 60-100% since the beginning of the war, but it is gradually resuming.
It was military operations in Kyiv and its environs, “arrivals” that influenced and are still affecting the drop in demand for townhouses and cottages in Kyiv.
Growth or fall in demand depends on the distance from the center, readiness, type of real estate.

Buy and sell cottages and townhouses in Kyiv on the suburban real estate portal zagorodna.com

Author: Viktor Kovalenko

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