Business news from Ukraine

Power cuts canceled in Kyiv – DTEK

DTEK Kyiv Grids announced the cancellation of stabilization power outages in Kyiv by Sunday morning.
DTEK Kyiv Electric Grids returned electricity to all consumers who were subjected to stabilization blackouts by order of NPC Ukrenergo from 09:20 on October 22 to 00:36 on October 23. All houses in Kyiv with light,” the company said on its website on Sunday.
For his part, Serhiy Kovalenko, CEO of the energy supplier YASNO, on his Facebook, among other things, announced the cancellation of shutdowns in Kyiv.
“End energy alarm in Kyiv,” he wrote, advising to keep an eye on the company’s announcements to have time to prepare for possible outages.
DTEK Kyiv Regional Electric Grids and DTEK Donetsk Grids also reported that by Sunday morning all their clients, to whom stabilization restrictions were applied by order of Ukrenergo, also had electricity due to their cancellation.
On Sunday morning, the head of the Rivne OVA, Vitaliy Koval, said that during the night, power engineers managed to connect most of the subscribers to the power supply, to whom it was limited due to Russian attacks on the power system. “Now we are working on connecting another 24,750 subscribers. These are, in particular, residents of the village of Zarya, Alexandria, Klevan, Orzhei, Shpanov, Shubkov and others,” he wrote on his Facebook.
At the same time, all publications continue to call on Ukrainians, both the population and businesses, to save electricity as much as possible and not create additional load on the networks during peak hours.
As reported, as a result of damage to the energy infrastructure of Ukraine as a result of the morning large-scale air attacks of Russian troops on October 22, NPC Ukrenergo was forced to impose power supply restrictions in Kyiv and ten regions. According to the company, the scale of destruction on that day is comparable to or greater than that inflicted on the energy system on October 10-12. Earlier, Energy Minister German Galushchenko said that Russian air attacks on energy systems, which have intensified since October 10, have damaged 30-40% of the total national energy infrastructure. According to his calculations, approximately half of the thermal generation capacity was damaged, due to which Ukraine lost 4,000 MW of capacity.

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Blackouts introduced in Kyiv city and region to avoid accidents

Power cuts have been introduced in Kyiv city and region in order to avoid accidents, the press service of DTEK Kyiv Regional Grids has reported.
“NPC Ukrenergo introduced blackouts in Kyiv region in order to avoid accidents from 23.34 on October 19,” the company said.
The blackouts will reportedly last no more than 4 hours per customer.
“However, it can be repeated within a day after 4 hours if Ukrenergo does not cancel the use of stabilization blackouts. For example, if your house was disconnected from 10:00 to 14:00 in the morning, if the stabilization blackouts continue throughout the day, the second blackout will be from 18.00 to 22.00 and from 02.00 to 06.00,” DTEK said.
The list of settlements, which may be affected, is posted on the DTEK website.
“To support the power system, we urge all residents of the region to consume electricity moderately – turn on energy-intensive appliances one by one, reduce electricity consumption as much as possible in the evening from 17.00 to 23.00. We ask business clients to limit the use of outdoor lighting on the facades of offices, restaurants, shopping centers,” the company again said, noting that it will help reduce the need for blackouts or the number of homes that are disconnected.

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New manager of Tarantino Family restaurant chain plans to invest in reconstruction of Zhytniy Rynok in Kyiv

Florian Bollen, the new manager of the Tarantino Family restaurant chain, announced his intention to invest in the reconstruction of the Zhytniy Rynok (Zhytniy Market).
A new tenant is working on a reconstruction project in cooperation with Kyiv City State Administration and Zhytniy Rynok municipal enterprise, he said in an interview with Focus.
“The general idea is to make a comfortable public space with a place for Ukrainian producers and farmers, with platforms for public and social initiatives, with quality food at the food court, with comfortable places for trade. A craft brewery will be a highlight. Also in the plans are a cheese factory, a bakery, a children’s zone,” Bollen said.
According to him, reconstruction work can begin next year. At the same time, the businessman did not name the amount of planned investments.
“It is difficult to predict the final estimate amid war. The exchange rate is unstable, the logistics of construction materials is complicated. But I would like to start construction work next year. German Kraft Beer has a good reputation in the financial environment, we have the opportunity to receive affordable loans from European banks,” he emphasized.
Bollen explained that the building is on a long-term lease based on the results of tenders held by Kyiv City State Administration through the ProZorro e-procurement system.
As reported, the Tarantino Family restaurant chain in October 2022 came under the control of Florian Bollen, a German businessman and co-owner of German Kraft Beer craft breweries.

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In Kyiv on October 17-18 in afternoon up to 20 ° heat

Moderately cool weather is expected in Ukraine in the next 24 hours.
According to Ukrgidromettsentr, on Monday, October 17, there will be no precipitation in Ukraine. In the western, central and eastern regions, it is foggy in places at night and in the morning. Wind southwest, in the southern part northeast, 5-10 m/s.
The temperature at night is from 3° to 2° below zero, in the extreme west and south of the country 3-8° warm; in the daytime 13-18°, in the western regions in some places up to 22°, in the north of the Left Bank 10-14°.
In Kyiv on Monday without precipitation. Wind southwest, 5-10 m/s. Temperature at night 1-3° warm, daytime 15-17°.
According to the Central Geophysical Observatory. Boris Sreznevsky in Kyiv on October 17, the highest temperature during the day (24.0 °) was in 2018, the lowest at night (-5.8 °) in 1976.
Tuesday, October 18, no precipitation in Ukraine. Wind southwest with transition to northwest, 5-10 m/s. Night temperature 0-5° heat, in western and northern regions 5-10°; daytime 15-20°.
In Kyiv on Tuesday no precipitation. Wind southwest with transition to northwest, 5-10 m/s. Temperature at night 8-10 ° heat; in the afternoon 17-19 °.

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IMF mission may start work in Kyiv next week

The mission of the International Monetary Fund (IMF), whose positive conclusions will start work on a new program with it, is expected to begin work in Ukraine next week, said the head of the National Bank of Ukraine, Andriy Pyshny.
“We expect the start of the IMF mission as early as next week. We hope to reach agreements on macroeconomic indicators, parameters of the state budget for 2023 and sources of covering its deficit, which will be the beginning of work on a new program with the Fund,” the press service of the National Bank quoted him as saying. .
Pyshny also thanked the IMF for providing $1.3 billion in additional emergency financing under the RFI instrument, which arrived in Ukraine on Thursday.
As reported, on the eve of the IMF Managing Director Kristalina Georgieva said that the Fund’s team, together with the Ukrainian team, immediately after the annual meeting of the IMF and the World Bank (WB) this week, will determine Ukraine’s macroeconomic framework and budget.
In addition, US Treasury Secretary Janet Yellen noted that a new full-fledged IMF program for Ukraine could be early next year.
Finance Minister Serhiy Marchenko said the government estimates the need to finance the state budget deficit in 2023 at $3.5 billion a month, compared to $5 billion a month in 2022, which Ukraine has so far failed to raise. The best indicator was August with $4.6 billion, and in general, since the beginning of the war, or almost eight months, external funding amounted to $20.7 billion, of which almost 50% were grant funds.
The draft state budget of Ukraine for 2023, which was adopted in the first reading, provides for external financing of the deficit in the amount of $38 billion, or about $3.2 billion per month.

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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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