Discounts during bargaining on secondary real estate market in Kyiv in February reach 37% of price, say experts

13:40

Discounts by vendors during the signing of real deals on the secondary real estate market in Kyiv in February 2009 reached 37% of the price on average.

According to a press release of Kyiv-based Planeta Obolon real estate agency, the figure was calculated on the basis of an analysis of real deals signed in February with the direct participation of the agency, and on the basis of deals that the agency had checked and had full information.

"According to our statistics, in February apartments were sold around 37% cheaper than the average supply prices in each market segment," reads the document.

The average price of one square meter on the secondary real estate market in Kyiv in February 2009 fell by 9.7%, to $1,968 per square meter, reaching the fall 2006 level.

"In February the value index was lower than $2,000 per square meter. This is the level of September-October 2006. The pace of the fall is so fast that the majority of potential buyers are only considering purchases, and waiting for further falls in prices," reads the release.

The Planeta Obolon agency said that recently some potential buyers had started indicating larger sums in their applications for the acquisition of apartments than was registered in January or early February 2009.

In addition, the number of apartments for exchange on the secondary real estate market in Kyiv is growing.

"People are trying to find ways to settle their housing and financial problems with the help of exchanges. The number of exchange offers is small, but it is growing. This gives grounds to say that during the crisis, the forgotten methods of apartment exchange would see a revival," reads the document.

The press release says that in February work at some construction sites resumed.

"The stirring up [of work] is mainly linked with attempts of constructors to receive funds from the cabinet for financing of uncompleted constructions," reads the release.

According to the release, referring to data from Kyiv-based Prostobank Consulting, interest rates on mortgage credits denominated in hryvnias on the primary real estate market in February fell by 3 percentage notches on average compared to January, to 19.97%. Mortgage credits denominated in foreign currency were not issued.

"It’s possible to receive mortgage credits to buy apartments on the primary market, but only in those houses for which certain banks issue credits. The banks are interested in the completion of construction, [and have] started crediting constructors and investors in certain houses," reads the release.

According to the forecast of Planeta Obolon, there will be no radial changes in the trends registered in February. However, it is possible that the number of deals will grow.