The depreciation of the hryvnia, two-thirds of its value in 2014 had a negative impact on the commercial real estate market. If there is good news, they are that the market has reached its bottom and move him nowhere else - only up, as the economic situation stabiliziruemost, and begins the expected growth.
Now they have a lot of unfinished buildings and vacant sites without any potential for development in the near future. While in Kiev there was a significant increase in the volume of commissioned commercial real estate in 2016-2017, the work on these projects was started in 2013.
In an interview with the Kyiv Post managing Director of the Kiev office of Cushman & Wakefield Nick cotton said, transparency and a tax on vacant property could stimulate the development of Kyiv.
"The market is functioning, but it is clear that the situation is suppressed. One of the reasons is the lack of Bank financing. Therefore, to build strictly through its own capital - a brave step. The risk of investment in construction increased by volatile markets such as Ukrainian, where all the costs are fixed in dollars or euros, but the profit will most likely be in local currency," says Nick cotton.
He also notes that in Ukraine there is no legitimate database of transactions of purchase and sale or of an objective quality rating of buildings.
"On the one hand, this opacity increases the importance of experienced consultants in the field of real estatebecause we know the market and its players. However, we would prefer greater transparency. The main disadvantage of opacity is the lack of confidence of potential developers and real estate investors in high risk and relatively low GDP," he explains.
The increase in investor confidence could potentially have a stimulating effect on economic growth. More transactions, greater liquidity in the market, development will begin to move forward.