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.
Alliance Novobud, Avalon, CITY ONE DEVELOPMENT, Daria Bedia, DIM, INTERGAL-BUD, Irina Mikhaleva, KAN Development. Zezman Holding, Yaroslav Vozniak, Yuri Motuz, Анна Лаевская.
“Intergal-Bud” has received certificates of commissioning of the first house of Residential Complex CITY HUB and the tenth house in Residential Complex “Nivki Park”, the press service of the company reported.
According to the data of the Unified State Electronic System in the sphere of construction, in the commissioned first house of Residential Complex CITY HUB – 255 apartments, in the tenth house of Residential Complex “Nivki City” – 283 apartments.
Intergal-Bud” reminds that the certificate of construction completion is the basis for participation of the object in the state programs “єOsela” and “єVidnovlenia”.
CITY HUB is a business class project located in Solomenskyi district of the capital, on Mokra Street (Kudryashova Street), 8-10. The residential complex will have two houses, which are united by a stylobate, under which there is a large parking lot for 300 cars.
LCD “Nivki Park” at 67 Beresteisky Ave. is a comfort class project, 12 residential buildings with height of 12, 16-17 floors, 2931 apartments in total. The complex includes an underground parking lot for 580 parking spaces.
The construction company “Intergal-Bud” has been working in the market of residential real estate since 2003. The company has built 170 houses, 20 residential projects are at the stage of realization. The total area of the projects is 4.6 mln sq. m.
INTERGAL-BUD, REAL ESTATE, Residential Complex CITY HUB, Residential Complex Nivki Park
In 2023, Intergal-Bud Construction Company completed the construction of more than 120 thousand square meters of real estate and plans to launch four new housing projects next year.
“The war is making its own adjustments to the work of the entire industry, but Intergal-Bud continues to build. In 2023 alone, we received certificates of readiness for more than 120 thousand square meters of real estate in the capital region. In 2024, we plan to launch four new residential projects and are generally optimistic,” Anna Laevska, Commercial Director of Intergal-Bud, told Interfax-Ukraine.
According to her, in early 2024, the company also intends to complete the construction of 180 thousand square meters of housing in Kyiv, Lviv, Chernivtsi, and Zhytomyr.
In the sales structure of Intergal-Bud, more than 60% of transactions relate to the purchase of housing in finished buildings or those that will be put into operation in the next six months. At the same time, projects scheduled for completion in two years account for only 11% of sales, compared to 52% in 2021, noted Laevska.
“Investors, given the military risks, are not ready to wait for a long time and prefer to buy real estate at the final stages of construction. This is a common trend in the market. But at the same time, the demand for housing is high and it is necessary to ensure the continuity of the construction process. The number of transactions on the market is growing, and accordingly, there is a need for new projects,” the expert explained.
At the same time, the share of speculative demand in the market remains insignificant – Ukrainians mostly buy housing for themselves to improve their living conditions. For the same reason, the number of transactions for the purchase of two- and three-bedroom apartments, as well as renovated apartments, has increased over the past year.
According to Ms. Laevska, housing prices have increased by an average of 20% compared to last year. At the same time, prices grew more rapidly in the economy and comfort class segments, while in the premium category the growth was about 10%.
“Developers who demonstrate active dynamics on construction sites were forced to revise the cost of real estate, as the cost of construction has increased by a total of 40% since the beginning of the full-scale invasion,” she said.
Intergal-Bud has been operating in the residential real estate market since 2003. The company has built 170 houses, with 20 residential projects under construction. The total area of the projects is 4.6 million square meters.
The Intergal-Bud construction company (Kyiv) plans to boost housing construction 1.5-fold in 2018, to 250,000 square meters, Commercial Director Hanna Layevska has said. “In total, we plan to introduce about 250,000 square meters of housing in 2018. In 2017, we actually commissioned 170,000 square meters. This year we plan to launch at least five new facilities, which are mainly located in the downtown areas and in the Holosiyivsky district of Kyiv. These are Vystavkovy residential complex, Lukyanivsky Cascade residential complex, and a few more facilities that are in the design and construction phase,” she told Interfax-Ukraine.
According to Layevska, this year the company intends to finish the construction of Parkovi Ozera, Yaskravy, Otradny and Demiyivka residential complexes in Kyiv.
According to the commercial director of Intergal-Bud, prices for many properties in the first five months of 2018 grew by 10-12% in U.S. dollars. According to her, in the first half-year of 2018, purchases of apartments with 100% payment decreased and the share of installments and lending contracts increased.
At the same time, despite the price increase, the company’s sales pace in 2018 increased by more than one third compared to 2017, Layevska said. According to the commercial director, a major challenge for developers in 2018 is a lack of general contractors.
Intergal-Bud construction company LLC was founded in 2006. It is subsidiary of Lviv subsidiary established in 2003.
