11 Aug
The Speculative Boom May be at Its End in Ukraine – and We Enter Into the Basement Phase of Property Investment in Ukraine
Posted in Macroeconomy by admin No CommentsUkraine 'prices of properties s have come to a stop. The prices have decreased close around 5-8% during the second quarter of 2007, the market used. Opposto used to market the new market in the apartment was still positive, with small price rises above around 5% in the second quarter of 2007. In 2006 house prices in Kiev have increased close around 70%, compared to 65% of 2005. These numbers are the second of the œ â € of estate agents in Kiev of € of Realâ. Compared to price increases of 35% and 30% have increased the prices of 2004 where in 2003. The strong economic development is done, in part due to the pegged currency system. The initial underestimation of the hryvnia six years ago of strong economic development supplied and the price increases above. Since interest rates were maintained to support the plug, the price increases have supplied fuel An loan that was scav canaliare in housing markets, which still face severe constraints in supplies. However, the mortgage market in Ukraine is under developed and yet there are investments made by speculators and not from the people to live in accommodation buy. All secondary property transactions are made in U.S. dollars, while sales in primary hryvnia are performed in local currency. Since there are no restrictions on foreigners buying property in Ukraine, as well on agricultural properties. However, the problem with the current market is that there is a predominance of foreigners and rich ucranini that speculano in the market and not in locals with a system of the bank with a loan structure protection. So suppose that the Ukrainian property market when going from the stage speculative property market and the stage of the basement. We can see that the property market prendparteerà the emerging property market during the rear of 2008. This will show the market for a development still slow, but not with large margins seen in the last 3 years in Ukraine, but with a moderate increase 5-15% in the values of a property for a period (perhaps already seen in Kiev as we observe 7.5-10.2% increase in the values today). If vederemo property market in a strong market in the developing world remains to be seen. We believe strongly that there should be some foundations in the present macro Ukrainian before this stage sign the property market in Ukraine. Since we see Warsaw and Prague at this stage and the property market starts to be dominated by central evolventesi class in those countries and not only in speculators. We can provide a more detailed analysis of the market for our relations market research available in http://www.ec-ba.com
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