MBS Blog

Real estate prices have declined almost everywhere. This article from www.unian.net  indicates the sharp reduction in prices in Kyiv. From anecdotal evidence gathered by staff of MBS, we have concluded that prices have fallen even further due to the factors mentioned below. Moreover, the feeling among the public is that prices will continue to fall further. People whom we have spoken with…and whom are in the market for residential real estate…are waiting until AFTER this summer. The consensus is that the Ukrainian economy will be still be bumping along the bottom, but people will have even more serious cash flow constraints than now.

Kyiv apartments fell in price twice

During a year, prices on flats at the secondary market in Kyiv fell twice. According to the information of the Union of Real Estate Experts of Ukraine, the record fall in prices took place in the segment of one-room flats, Delo daily reports (#60 dated April 14).

In the first quarter of the year 2008, 1 square meter in one-room flats in Kyiv cost $3333, while in the first quarter of the current year, the price fell to $1878. The prices on two-room flats fell by 39%, three-room – by 38%.

Realtors believe the main reasons of the abrupt fall in prices are the reduction of mortgage crediting and the devaluation of hryvnia. In their opinion, prices on one-room flats have already reached the bottom. They expect that the native real estate market will recover by 2010, after the presidential election.