A wave of active construction
Interrupted by the financial crisis, caused a huge number of unfinished residential buildings. For a long time stood in this state, they again became an object of close attention, but now new players of the Kyiv real estate market.
Attempts to engage in a “problematic” new building were already at the beginning of the crisis. However, then there was a problem of coordination of prices with previous developers who could not bring the matter to their logical end. And now a new problem has appeared – it is not possible to agree with the city authorities.
According to Anatoly Topal, who holds the position of vice president in the Association of Professional Governors of Real Estate, the controversial issue was the extension of land lease agreements. The problem is that the price of the issue often exceeds the cost of ten apartments. Another factor that significantly increases the costs of the object is its “defrosting”. On average, about 50% of the total construction cost can be spent on this process. This process is also associated with serious bureaucratic red tape in government agencies, which often takes not only too much time, but also requires additional financial investments. Therefore, although at first glance, it seems that there is little work and investments in these objects, in reality the picture looks completely different.
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In addition, most apartments in new buildings have already been sold, which significantly reduces the possible profit of new developers. Despite the obvious problems, new investors show interest in such projects, hope to establish a dialogue with the authorities, and in 2012 to begin to implement them.