As expected, the increase in prices for apartments and other real estate in Kiev and its suburbs in 2007 continued its steady growth. Of course, not as frantic leaps, as in previous years, but still at 2-5%% in the month given. And what the most surprising – this growth occurred alongside a significant downturn in demand for apartments. Also of note, and decline in the number and volume of transactions on purchase and sale of apartments and real estate in Kiev over the same period of 2006. And despite all that construction companies Kiev motivate growth in property prices supposedly the increased demand. Such arguments are only interested Antimonopoly Committee of Ukraine, which has held a number of inspections (see details). And yet, you can try to identify such causes a rise in price of real estate in Ukraine.
The relative improvement of living standards in large cities and the capital of Ukraine and associated increase in the money supply in the population. Unequal distribution of income among the population of Ukraine. Rich inflate asset prices, including real estate, as generate demand.
Uneven development of various regions of Ukraine. The rise in prices will not stop until the city, such as attractive to live and inserting money as Kiev, Odessa, , Donetsk, Lviv. For most Ukrainians, the most coveted city has one. The surest way to launder dirty (the earned-gotten) money and the willingness to invest money without losses including and profitably, which results in the desire to hold each subsequent resale 5-10% more expensive than buying. The need to provide housing for residents of Ukraine, 92% of whom live in uncomfortable flats and houses. Input space is not enough to meet demand. As a result – real estate all missing. When the demand for housing increases, its price, of course, is also growing. Economic: The growth of construction costs. Various approvals, statutory deductions and city areas, high prices energy, rising wages, rising prices for building materials, high resource consumption, etc. High interest rates on loans for the development of construction projects. Stricter requirements to technology security. Increased regulations laying building materials and mounting systems than the construction of housing in the past years. Binding of construction companies to cash market currencies, including the foreign, as well as rapid development of the mortgage market. Development of small and medium business, dollar inflation and inflation hryvnia, resulting macroeconomic processes. The influence of the secondary real estate market, which tends catch up on the price level (and almost caught up with) the market buildings. Alignment property developers in the price (but not the purchasing power of the population) in Russia and Moscow. Political: Constant rotation of government bodies and local government. New officers get for themselves and their families for housing and real estate business upon arrival in Kiev. Absence of the normal tendering market instruments of land allocation.