The total supply in the commercial real estate market will reach 633,000 square meters by 2020, which is 1.5 times more than now, expert in the field of commercial real estate Ihor Zabolotsky has said. “At the end of 2018, the vacancy rate dropped to 3.8%. This is an extremely low level not only for Ukraine, but also for the world. In 2017 there were practically no new projects, 8,000 square meters were commissioned. This year the figure is more significant: taking into account those objects that are to open in December 2018, the figure will reach 85,000 square meters. But these are mostly small objects with an area of 10,000-20,000 square meters, and the appearance of each of them could not affect the market as a whole. The total supply over the next two years could exceed 600,000 square meters. The total stock might increase by more than 1.5 times,” Zabolotsky said at a press conference in the Interfax-Ukraine agency.
In particular, he noted that the opening of the River Mall shopping center is scheduled for the second quarter of 2019 and the Retroville trade center for the third quarter of 2019, as well as the opening of the Blockbuster shopping center was postponed to February 2019. According to the expert, the success of the projects will be determined not by the level of rental rates, but by the purchasing capacity of the population in 2019.
Research and Markets Ltd. has made a list of leading elite real estate agencies from Kyiv out of 280-300, which are operating on the real estate market in the city, according to the company’s data.
According to a report of Research and Markets on the Business Wire website, the top 10 agencies includes Blagovist, Park Lane, Lipki, Lux-Estate, IDGroup Premium Real Estate Brokerage&Investing, The House, Kiev Standard, Elit Realty and Colliers International
The company said that some 280-300 companies are operating on the Kyiv real estate market, including consulting companies, and the number of employees reaches 4,000-5,000 people.
According to the study, average price in the premium real estate segment in Kyiv in 2017 was $2,600 per square meter.
“In 2018, prices could rise by 2-3%, which will not affect the overall picture of the real estate market in Kyiv,” the company analysts said.
AGENCIES, ELITE, LIST, REAL ESTATE, RESEARCH AND MARKETS, TOP 10
The attractiveness of the Ukrainian real estate market for foreign investors is growing due to a decrease in the number of quality assets available for investment in Europe, Cushman & Wakefield consulting company has said.
“The narrowing of the range of investment opportunities in mature European markets creates the potential for growing interest in Europe’s peripheral markets. We already see investment interest from the countries that are our close neighbors (Romania, Hungary, Slovakia, Bulgaria, Croatia, and Serbia) and Ukraine has a chance to attract potential investors to its market,” the head of the capital markets department Cushman & Wakefield in Ukraine, Volodymyr Mysak, said.
According to him, the real estate market in Ukraine is undervalued: the possibility of rental growth is available in all segments of commercial real estate (offices, warehouses, retail space), and capitalization rates create attractive returns for investors.
“Capitalization rates for premium assets in office real estate are 12%, for retail space some 12.5%, and for logistics some 12.5-13%,” the expert said.
According to Cushman & Wakefield, in the fourth quarter of 2017 the European market attracted a record high volume of investments of EUR112 billion, after which the best quality assets across Europe are becoming increasingly scarce.
Cushman & Wakefield (formerly DTZ) was founded in New York in 1917. The company is a consultant in the field of commercial real estate with an annual income of $6 billion. Cushman & Wakefield operates in more than 70 countries, employing 45,000 people.
The Cabinet of Ministers of Ukraine has approved the form and the rules for presenting reports on the signed real estate sale and purchase contracts and payment of obligatory pension insurance tax by notaries. “Notaries quarterly, until the 20th day of the month following the reporting quarter, are required to submit a report on the signed immovable property sale and purchase contracts and payment of the compulsory pension insurance tax to the Pension Fund authorities at the location of the notary public office or private notary’s workplace using the approved form,” the press service of the Ministry of Social Policy said, citing a government decision.
According to the decision, real estate purchase and sale contracts are endorsed by notaries with documentary evidence of the payment of the levy on transactions on purchase and sale of real estate.
When endorsing sales contracts, a notary shall verify the payment of the fee by the buyer and demand the respective documents.
“The form of the report on the signed immovable property sale and purchase contracts contains information on the number of concluded real estate purchase and sale contract, the value of the property and the amount of the compulsory pension insurance tax paid,” the press service said. The implementation of the resolution makes it possible to improve control over the payment of the tax and ensure the completeness of revenues sent to the national budget
