Some 20 new residential complexes appeared in the primary housing market in the business and premium class segment in 2020, increasing their share in the overall market structure by 4 and 1 percentage points (p.p.), respectively.
“Now the market knows about almost 90 business class residential complexes compared to the supply of 70 residential complexes at the end of last year, thus the share of this class in the market structure rose by 4 points (up to 29%), and the share of premium class by one point (up to 6%). There is a growing trend towards better and more comfortable housing,” NAI Ukraine told Interfax-Ukraine.
So, according to its data, up to 30% of layouts in the supply of business and premium projects are options with increased comfort, providing for the presence of terraces, apartments with improved view characteristics, increased areas, penthouses and two-level housing. The increased areas of premises allow the use of various functional and design solutions.
For example, an average two-room business class apartment has an area of 70-80 sq m, and premium up to 90 sq m. Three-room apartments range from 90 to 150 sq m, and it is here that consumers’ demands are concentrated.
“The main discovery of AIA Home Design Trends Survey, which summed up the U.S. housing market in 2020, was the catastrophic drop in popularity of dense buildings and smart solutions, and among the design trends – the increased size and number of windows. Significant spending time at home due to the pandemic and remote work prompted many to reconsider their housing requirements in favor of increasing the area, space, attractiveness of the environment. These trends are equally relevant for the Ukrainian market,” Maryna Hurevych, the head of the consulting department at NAI Ukraine, said.
The average price on the primary housing market in Kyiv in January-March 2019 grew by 4% or $50, reaching $1,252 per square meter, the press service of City One Development (Kyiv), referring to the results of the monitoring of its analytical department. The press service said that at the same time, the average price at the start of sales increased 10% compared to last year, to $1,023 per square meter.
According to monitoring, in the first quarter, business and comfort projects entered the market. The company also notes a tendency to reposition of projects of the economy and economy plus classes into comfort. However this is not always accompanied by an improvement in the quality of the project.
According to City One Development, since the beginning of the year, sales began in 16 new projects with a declared volume of about 9,500 apartments, while in 2018, some 10-12 new residential complexes entered the market every quarter.
At the same time, InCo home (Invest-Consulting AMC LLC), a member of the Kovalska industrial and construction group (both based in Kyiv), in the first quarter of this year, saw a decrease in sales by 30% compared to the same period 2018, analyzing sales for 11 new residential complexes, in the construction of which the company has invested.
According to experts from both companies, the hryvnia strengthening has influenced the real estate market at the beginning of the year. At the same time, InCo home said that the presidential election did not significantly affect the market.
Prices on primary housing market in Ukraine grew by 5.3% in January-March 2018 year-over-year, and by 4.3% on the secondary market, the State Statistics Service has reported. According to the agency, the largest rise in prices in the primary housing market was observed for one-room apartments – by 7.2%, while prices for two-room apartments went up by 4.7%, three-room apartments by 2.1%.
In the secondary market, in January-March 2018, prices for one-room apartments rose by 5.9%, those for three-room apartments rose by only 2%, two-room apartments by 4.6%.
As reported, referring to the State Statistics Service, Prices in the primary housing market in Ukraine in 2017 increased by 4.7% compared to 2016, and in the secondary market by 4.5%.
