The fall in property prices - myth or reality? - 17 December 2010

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19:22 The fall in property prices - myth or reality?
"Prices for apartments in Kyiv fell," "The price of new real estate in Kiev decreases with each passing day", "Apartments in Kiev can be bought for 10,000 dollars," "The prices have reached their bottom. It is these titles are increasingly seeing visitors to Web sites, as well as readers of various newspapers and magazines. Information on real estate sites and forums is full of such posts. How valid are similar sounding phrases? Is there any reason for such statements? We often like to indulge in wishful thinking. But let's look at the statistics - the trend of incidence rates in U.S. dollars really is, but solely on the old housing of poor quality. This is usually Khrushchev, built in the fifties - sixties of the last century or Gostinka whose area does not exceed 25-30 square meters. That is a property that, for all current parameters can not be attributed even to shelter the economy class. As for the new standards of comfort, the real estate market is currently undergoing a reconstruction phase after certain crises in the economy. In addition, some companies - developers, such as the NSC, the construction of planned facilities in the period of financial instability, while performing in full its obligations to buyers of apartments. "Factors to reduce the price of high-quality new housing is not unique, - says head of sales department," NSC "Dmitry Shostya. - We have analyzed the situation and concluded that lowering prices will entail reducing the quality of building. This means that we can not use high-quality construction materials, will have to withdraw from the European standards of energy conservation and use of cheaper and non-professional workforce. Also, we have to reduce wages. I'm not talking about energy and the cost of most modern building materials. We have our customers that our accommodation, although concerns of modern grading to shelter the economy - the class, built at home in business class. Reduce the level of quality we do not have a difficult time for all time, the more we will not do it now. " The company "NSC", which is building a residential complex " The park "in Kiev and is planning the end of 2010 to pass the second section, and in the first quarter of 2011 the third section of the house number 26, note that in the pre-New Year shares a number of apartments will sold at a price of 8,990 hryvnia per square meter, but after the New Year and putting the house in operation, the cost per square meter will be at the market. Wanting to buy their own homes, quality and comfortable, with each day becoming more and buying modern and comfortable accommodation with a gradual return of the property market mortgage - a reality for many people of Kiev.
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