You're reading: Expert: Housing prices in Kyiv reach 2009 level after large correction

Average housing prices in Kyiv in 2011 fell by 1.25% and reached the level of 2009 prices set after a large price correction, the chairman of the committee for analysis and real estate market statistics at the Union of Realtors of Ukraine, and the director of the assessment department at Samson, Vsevolod Zhoholev, has said.

"In 2011, housing prices in Kyiv fell by 1.25% on average. The fall was uneven. In the first half of the year the prices were considerably falling and by August were down by 4% on average. In August… people started investing in property, and a slight splash was seen, which continued from August to October and forced prices to grow by some 3%. However, from October the situation calmed down and today we see a stable level. A fall in activity is seen. Today, property prices are similar to those registered in 2009 after a large correction," Zhoholev said at a press conference at Interfax-Ukraine in Kyiv on Monday.

Zhoholev also said that demand has reoriented to the segment of large, quality property, in particular, in September-October demand for two- and three-room apartments was seen.

He said that currently the average price of a one-room apartment in Kyiv is $71,000, that for an apartment for small families – $52,000, a two-room apartment – $98,000 and a three-room apartment – $125,000.

"The smallest price of an apartment today is around $35,000 – these are re-equipped privatized dormitories with a common kitchen, etc," he added.

The expert also said that last rent rates for housing in Kyiv grew by some 5% mainly thanks to economy and medium class apartments in outlying districts of Kyiv. Rent rates in downtown Kyiv almost remained unchanged.

He said that in 2012 rent rates would grow along with inflation.

The president of the Union of Realtors of Ukraine and director general of Samson consulting company, Oleksandr Rubanov, said that growth of rent rates in Kyiv in the period of the Euro-2012 European football championship could be 5-7%.

Rubanov added that in 2011 the number of property sale and purchase deals in Kyiv grew by one third compared to 2010.

Commenting on the deals with mortgage crediting, Zhoholev said that at present, it is better to lease an apartment and not to buy it with mortgage crediting.

"Mortgage crediting today is not seen in Ukraine. Rates of 17% per annum are senseless, and the product is not in demand now," he said.