You're reading: Size not all that matters for newly rich on real estate market

In the years immediately following Ukraine's independence, the country's wealthy class became famous for erecting massive, gaudy mansions – unmistakable displays of affluence to separate themselves from the largely penniless majority of the population. Noticeably big on size, the palaces were noticeably small on taste.

Now, the housing tastes of the newly rich are beginning to change. Yury Samoylovitch is the board chairman of Arkada-Termodom, a Ukrainian-owned construction company. He says that Ukraine's newly rich are no longer trying to outdo one another with huge and pompous mansions.

'Since those houses were unreasonably spacious and in some respects tawdry, they eventually became of no use to their owners,' Samoylovitch explains. 'Today, locals are striving to embrace the European trend of building exquisite cottages,' he adds.

'These days newly rich Ukrainians generally opt for more modest spaces with more European style,' adds Alla Litvin, a real estate agent with DTZ.

Samoylovitch is a corresponding member of the Ukrainian Architectural Academy. And his company specializes in building modern European-style cottages and mansions using German technologies.

Set up more than three years ago, Arkada-Termodom employs 30 professional designers and 100 laborers. According to Samoylovitch, the company has built about 20 luxury residences in and around Kyiv since it was founded.

Arkada not only designs and builds its houses, it promises to handle all maintenance on its houses for two years. Company experts will also advise on interior decorating aspects of the houses it constructs.

Samoylovitch says that his company does not strive to copy Western styles. That is not necessarily what Ukrainians want. What they do want is modern technologies and high-quality, imported materials that make for comfortable and reliable homes.

'We must import a large proportion of our construction materials as we [Ukrainians] gradually familiarize ourselves with the global construction industry,' Samoylovitch says.

He says that most of the homes Arkada constructs, while not palatial by any means, are still good-sized, multi-level villas situated on nice-sized plots of suburban land. Just as importantly, they boast state-of-the-art conveniences, including multiple bathrooms, saunas, swimming pools, fireplaces, libraries, studios, underground garages, back-up power generators, top-quality insulation and independent water-supply systems.

Landscape architecture is also part of the equation. Arkada has installed fountains and decorative lanterns on the grounds for clients on request.

A typical Arkada house is between 150-200 square meters and costs about $550-600 per square meter (roughly $100,000 per home, about the price of a comfortable apartment in the center).

Arkada's next project is to start building multi-family condominiums in Kyiv, which will require much less area to build on than suburban residences, yet offer residents much of the same luxuries and benefits.

Arkada's typical clients today are newly rich businessmen who were not affected by last fall's financial crisis.

'Of course, at present our clients are basically successful businessmen,' says Samoylovitch. 'But, we hope that in the future, people of average income will be capable of purchasing such villas via credit, as is currently done in the West.'
Anna Stepanenko can be reached at [email protected]