Kyiv housing prices fell 19.3 percent in December; rents fell further

5 January, 18:25 | Interfax-Ukraine

Kyiv housing prices fell 19.3 percent in December; rents fell further

U.S.-dollar denominated prices of Kyiv-based secondary housing December 3, 2008 through January 5, 2009, fell by 19.3% on average.

According to data posted on www.realt.kiev.ua, the average price of one square meter of housing on Kyiv's secondary market over the period under review fell by 16.99%, while the price of a flat decreased by 21.62%. On average, the price of one square meter of primary housing in the hryvnia over the period under review rose by 4.97%.

On Kyiv's secondary housing market, the average price of one square meter in a one-room flat in December fell by 16.5%, while that in two-room flats decreased by 17.01% and three-room flats by 17.46%.

The average ask price on the secondary market in Kyiv per one-room flat was 20.55% down, per two-room flat 21.66% down and per three-room flat 22.64% down.

On the primary market, the average price of one square meter of housing in one-room flats over the period under review fell by 0.64%, while that in two-room flats increased by 10.05% and in three-room flat by 5.49%.

Average rent rates in Kyiv December 3, 2008 through January 5, 2009, declined by 22.11%. The average rent rates of one-room flats fell by 26.83%, that in two-room flats by 21.83%, and three-room flats by 17.67%.

The information for this analysis was taken from open sources. The Interfax-Ukraine news agency is not responsible for their reliability.

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muse (Guest) | 19.01.2009, 03:00

We must defend our country .....Ukraine nothing eles matters

Youssechka from France (Guest) | 09.01.2009, 19:17

The offer is plentiful with a demand without money by drying out of the credit ( credit-crunch ).
Banks suffer from their financial disastrous financial status and have to recapitalize .
The correction will be made mechanically by confrontation of the offer and the demand . You should not forget the foreign exchange market and the value of the US$ / Hr . Maybe !! the dirty money from Maffia Elites will come to rescue of the real-estate market in free-fall .
If the fall is 40% for 2009 ; it will be of how much in 2010 , 2011 , 2012 etc....????
The economic recovery in Ukraine will not be in 2010 . Foreign capital does not trust any more UKRAINE . Then how to reassure the speculators taken in their speculative madness ??? very crazy .

Guest (Guest) | 09.01.2009, 16:26

Let us deal with reality not assumptions.Real estate is about supply and demand and is that that governs prices.Ukraine is a volatile country,all confidence is lost.foreign investment is risky to say the least.Taking this into consideration expect prices of real estate to fall as much as 40% during 2009.

Youssechka from France (Guest) | 07.01.2009, 21:44

The prices are going to collapse and the crisis is at his its beginning. The increase of the dollard is going to accelerate the fall of the real-estate market by the insolvency of the borrowers and the financial fragility of banks. It is necessary to stop dreaming because the economic crisis is very there and the perspectives( outlooks ) are very dark...The crisis of the gas with Russia does not have to make the true economic and financial problems forget. The Budget 2009 will be overdrawn exceeding the limits imposed by the IMF and will elaborate with unrealistic hypotheses. The next payment of the second slice(edge) of the IMF risks to raise a problem. Without the money of the IMF, the crisis can increase and the dollard to fly away with all the consequences which we know .

Guest (Guest) | 07.01.2009, 21:14

Algeria and Egypt will produce more gaz - as Russia is not reliable.

Murcik (Guest) | 07.01.2009, 21:07

I think the prices will go down and after a falling of 20-30 percent the prices will stabilize.In fact the prices are so ex aggerated now.Because of that home owners must be more carefull when they are renting their homes.If they insist on high prices they will/can not find the people to rent their real-state.

Guest (Guest) | 07.01.2009, 13:31

Housing in Ukraine has been unsustainable since 2005/6. The sustainability index is around 3.2 the average level of annual income. In most western countries the price index is around 5-6 times Annual income.In Ukraine it is close to 15 to 20 years. Prices had to collapse. The main concern is the completion of new apartments still under construction.if this market collapses it will be along time before stability in Ukraine\'s housing market returns. In the long run this could be a good thing for Ukraine as in the future prices will only increase as income and economic activity increases

Guest (Guest) | 07.01.2009, 14:52

increase from a lower level, yes.

Guest37 (Guest) | 07.01.2009, 13:05

The consequences on the real-estate market when the dollard will climb on 15 hrivnas during spring?? The total collapse??

Guest (Guest) | 07.01.2009, 13:26

Massive defaults on loans, banks getting then their security in terms of the real estate (houses, apartements), lot of apartements will be sold, apartement prices crash down, bank defaults, job losses.....

Guest (Guest) | 06.01.2009, 15:13

ukraineeconomy.blogspot.com

Guest (Guest) | 06.01.2009, 15:46

very good blog with deep economical analysis!

Guest (Guest) | 06.01.2009, 15:12

http://ukraineeconomy.blogspot.co m

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Kyiv housing prices fell 19.3 percent in December; rents fell further

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