Realtors have predicted that housing prices will fall by around 10% by the end of this year. This forecast was made by Chairman of the Committee for Analysis of the Union of Ukrainian Realtors Vsevolod Zhoholev.
“There are currently signals to a still small decrease. It will not be a landslide, but I think that there will be a slight decrease by the end of this year,” he said.
The expert noted that the cost of small-sized one-room apartments and standard one-room apartments was falling most significantly, with the price of small-sized one-room apartments continuing to decline in January 2011.
“This indicates that the rich have become richer, while the poor have become even poorer,” Zhoholev said.
President of the Union of Ukrainian Realtors Oleksandr Rubanov said that as of January 1, 2011, the average price of a small-sized one-room apartment in Kyiv was USD 53,000, a standard one-room apartment – USD 71,200, a two-room apartment – USD 97,900, and a three-room apartment – USD 130,200.
According to the Union of Ukrainian Realtors, the price of housing in Kyiv in 2010 in dollar terms fell by 6%. A substantial share of decline accounted for October-December 2010. At the same time, apartments in new apartment blocks in the city did not fell in price last year.
Zhoholev said that such a situation was typical for most big cities, apart from Odesa and Crimea, where housing prices remained stable last year.
According to the expert, the price of apartments and non-residential premises downtown Kyiv was overrated, because capitalization rates in the center are lower than those in the suburbs.
“This is a sign that prices for housing in the center will most likely decline. The center has lost its attractiveness. There are currently no factors that would attract business and trade, because the infrastructure is worn out, whereas the situation with parking and utilities is deplorable and is continuing to deteriorate,” Zhoholev said.
