There are practically no sales on the real estate market in Kyiv, and real prices at which purchase and sale transactions are concluded, make up 50 percent of the pre-war. This was told by Vladimir Chernenky, Director for Retail Business Development of Pravex Bank during the round table on the topic: “Return of retail lending: features of wartime”.
“There are practically no real estate sales on the market. The primary market has practically stopped. There are sales of objects that are either built or have a degree of readiness of 90% or more. And it is precisely such facilities that are being built and completed,” said the CEO of Pravex Bank.
He also noted that the construction has also almost stopped.
“The launch of new facilities is not planned in the near future. And facilities with a degree of readiness of less than 80% now have a very low probability of an active resumption of construction,” Chernenky said.
Frozen construction sites and halted sales are accompanied by falling prices.
“There are objects in Kyiv that are sold at a discount of up to 50% of the cost that was before the war. We see discounts with which we are ready to sell housing in front-line cities, the real estate market in Odessa sank, because there are certain military risks,” Vladimir Chernenky states.
According to him, the lack of buyers in the market is explained by the structure of the market itself.
“The main sales before the war were investment sales, when 40-60% of housing was bought by investors as an alternative to deposits: meet the pit stage and sell it when the object is ready. This part of the clients has disappeared today,” said Vladimir Chernenky.
The rest are residential buyers, but they are few in number.
“There remains a category of clients who really need housing for their own needs. And the new state program should help both developers to resume construction, and buyers to purchase real estate, ”the banker is sure.
Recall that old and low-quality real estate is facing particularly difficult times around the world. It is expected that the global real estate market will fall significantly, and prices for illiquid properties will decrease. This is due to the global economy, which is experiencing constant turmoil.