Business news from Ukraine

HOUSING PRICES MAY GROW IN UKRAINIAN CAPITAL BY 15-20% IN 2021

The average price of apartments in the primary housing market of Kyiv may grow by 15-20% and reach $1,300 per square meter already in 2021, and by the end of 2023 it may reach $2,000 per square meter, Director General of Kovalska Group Serhiy Pylypenko has said.
“The trend continues, and this year we expect housing prices to rise no lower than last year by 15-20%. This is the minimum level of increase. The market is very active, not overheated, demand is stable. Amid rising prices for construction materials, inflationary processes, lower interest rates, affordable mortgages and other factors, we expect a rise in prices. My expectations: already this year, the average price in Kyiv may reach $1,300 per square meter, and by the end of 2023 – already $2,000 per square meter,” Pylypenko said during the discussion panel “Post-Quarantine Development” hosted by the Confederation of Builders of Ukraine in Kyiv on Wednesday.
According to him, the growing shortage of high-quality land sites for construction in the Ukrainian capital also influences the rise in housing prices.
“The old General Plan has lost its relevance, the new one has not yet been adopted, so in the next one or two years it will not be easy to find a site which is intended for residential construction, and this will create a certain shortage of sites for future development, which will also influence the rise in prices,” he said.
In addition, the expert predicts an increase in prices for construction materials on average within 15-20% during the year. According to him, this trend forces developers to take this into account at different phases of the construction.
“All developers have experienced an increase in the cost of basic construction materials, in particular metal, which has grown by 30-40%, and other materials are also growing in price. This year, I expect that the prices for basic construction materials and construction costs may rise by 15-20%. This should to be taken into account in pricing,” he said.
According to the forecast of Pylypenko, the rise in housing prices will lead to an enlargement of the development market and displace unreliable developers.
Kovalska industrial and construction group has been operating in the construction market of Ukraine since 1956. It is a leading manufacturer of construction materials, developer and builder of the country.

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UK-BASED IWG OPENS TENTH WORKSPACE IN UKRAINIAN CAPITAL

UK-based IWG Plc, a flexible office solutions provider, is expanding its network in Ukraine and opening a new Regus workspace in Kyiv.
According to a press release from the company, the new workspace of nearly 1,700 square meters will be located in the business center Avenue 53 in Peremohy Avenue, and will be designed for 295 jobs.
“We have been looking for a location in Peremohy Avenue for a long time, because there was a request from our residents who travel to the center of the capital every day from Akademmistechko or Irpin and spend more than an hour in traffic jams, because time is the most valuable thing for each of us. Therefore, expanding our network in Kyiv, we opted for Avenue 53,” Director of IWG in Ukraine Yulia Lytvynenko said.
Despite the slump during the quarantine period, she said the IWG expects demand for flexible office solutions without fixed jobs to grow.
“Now, due to the high level of uncertainty, a classic office with a long-term lease is associated with great risks. While flexible offices allow companies to increase or decrease the number of employees without financial losses and pay only for the area they use,” she said.
IWG (formerly Regus Group) is the global operator of leading office rental companies. The first Regus office center in Ukraine is Horizon Tower in Shelkovichna Street was opened in 1998. In total in Ukraine as of July 2020 IWG is represented by two brands Regus and Spaces in ten business centers in Kyiv: Maidan Plaza Spaces, Horizon Tower, Kyiv Podil, Gulliver, Horizon Park Business Center, Podil Heritage, IQ center, Silver Breeze, Forum West Side, and Avenue 53.

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INVESTOR PLANS TO INVEST EUR2.9 BLN IN TRADE CENTERS IN UKRAINIAN CAPITAL

Vagif Aliyev, the founder of PrJSC Mandarin Plaza, the investor and developer of Kyiv-based Lavina shopping center, on November 20 launched the first stage of the Blokbuster Mall shopping and entertainment center in Bandery Avenue in Kyiv, investing $400 million in construction. According to an Interfax-Ukraine correspondent, only a Silpo supermarket has started working in the facility. The rest of the stores will be launched on a fan-based basis as they are ready, the founder of Nai Ukraine, the project broker, Vitaliy Boiko, said.
According to him, the cost of investments in the construction of the Blokbuster Mall shopping center was $400 million. The total area of the first stage is 200,000 square meters, the leased area is 110,000 square meters. After the launch of the second phase, which is at an early stage of construction, the total area will be 300,000 square meters, the rental area some 200,000 square meters. The facility is located on a plot of 30 hectares.
“Vagif Aliyev’s pipeline now contains projects for EUR2.9 billion (12 projects of shopping and entertainment centers). This is the second largest indicator in the world in terms of development of retail real estate. Westfield is the first developer in the world with EUR8 billion, and the third one is one of the largest European investors with EUR2.5 billion. The uniqueness is also that all Mandarin Plaza projects are located in one city – Kyiv,” Boiko said at a briefing.

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VALENCIA TO BECOME 27TH DESTINATION OF RYANAIR FROM UKRAINIAN CAPITAL

Ryanair, the largest low cost airline in Europe, from October 29, 2019 will launch direct flights from Kyiv to Valencia, Spain.
According to the booking system of the airline, the Kyiv-Valencia flights will be serviced twice a week on Tuesdays and Saturdays with departure from Kyiv at 11:55 and from Valencia at 06:15.
Tickets are available in the booking system. The cost of one way ticket starts from EUR 66.30.
Valencia will be the 27th destination of Ryanair from Kyiv and the third city in Spain.

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