UKRAINIAN REAL ESTATE: Property prices - is now the right time

[JayH]

There is no doubt that the market has fallen to a very significent extent--picking the bottom or the end of the downward spiral is an established principle for the canny investor or home seeker anywhere.
Given all the political  upheavals over the last years-- and the outlook now looking far rosier-perhaps this is the bottom of the market in Ukraine--of course-- that may well not apply to the Crimea where the repurcussions of the Russian invasion are likely to continue for some time( years?)

UKRAINIAN REAL ESTATE: Property prices and hryvnia woes - is now the right time to buy?

Ever since Ukraine’s hryvnia plunged earlier this year it seems like a day doesn’t go by without someone asking if now is a good time to buy property in Kyiv. This is a result of both the unstable economic situation and of the non-transparent nature of the Ukrainian real estate sector. Unlike more developed real estate markets, Ukraine does not have a Multiple Listing Service that enables real estate agents to share property information with other agents who represent buyers, and for buyers’ representatives to obtain detailed information about a property from a shared database.

While Ukraine has many large real estate portals, property information for existing homes is often fragmented, incomplete or inaccurate. As a result, potential buyers often look to locally-based real estate professionals for insider tips on real estate pricing to help them find the best deals in Kyiv. Since Ukraine’s political and economic crisis became a major story in the Western media, we also have been seeing an increased interest from property funds and individual foreign investors who are looking for deals.

http://bunews.com.ua/economy/item/ukrainian-real-estate-property-prices-and-hryvnia-woes
 

Why it’s time to invest in real estate market in Kiev, Ukraine.
The central location of Ukraine on the continent, well-educated manpower, a number of young talents and strong academic institutions – this is just a short list of what Ukraine has to offer and what attracts foreign investors.

What is more, we can see a growing number of real еstate complex projects being initiated in Ukraine, positively affecting the local economy.


The fact that Ukraine continues to make progress towards implementing the Ukraine–European Union Association Agreement, which should pave the way for increased trade, should give investors reason to be optimistic when considering Ukraine.


http://news.kievapts.com/why-its-time-to-invest-in-real-estate-market-in-kiev-ukraine/

Guide to Real Estate purchase in Ukraine, Kiev & Odessa.
http://www.uarealtygroup.com/


http://realestateukraine.eu/

[JayH]

War and recession create real estate opportunities

KYIV – For those regretting not having invested in Kyiv real estate during the burgeoning 1990s or the market downturns since then, Ukraine’s current struggles have created a window of opportunity to find some bargains.

Though Kyiv and Lviv – two of the most popular destinations for diaspora Ukrainians – are both securely insulated from the warfare on the country’s eastern edge, they have suffered from the economic devastation, particularly the hryvnia’s devaluation of about 46 percent since the war’s start.

Prices haven’t fallen as low as Ukraine’s crash of 2008-2009, but they’re 15 to 20 percent lower than year-ago levels, creating an attractive entry point, said Halyna Melnykova, the general director of Blagovist, Kyiv’s largest real estate agency.

“People have the ability to fulfill their hopes that hadn’t opened up for five years,” she said.

http://www.ukrweekly.com/uwwp/war-and-recession-create-real-estate-opportunities/

[JayH]

Nothing like looking at real information-

Houses for sale in Crimea


http://en.home-poster.net/buy-house/Crimea/

http://en.home-poster.net/buy-house/Crimea/20-Sevastopol/

[JayH]

Demand for Real Estate in Annexed Crimea Plummets

Russians, the last hope of the Crimean real estate market, appear to have lost interest in buying properties in the contested region.

This comes as an unpleasant surprise to Crimea, which — banking on its coveted climate and coastlines — had hoped for a boom in sales after Russia annexed the peninsula from Ukraine in March last year.

Instead, demand for properties in the region has fallen 60 to 70 percent compared with 2013, said Ilya Volodko, head of the Macon Realty Group real estate consultancy.

Surprisingly, Crimean property owners' optimism was a big part of the problem. Expecting a spike in demand, property owners and developers hiked prices in 2014, sending the average price of residential real estate in Crimea up 46 percent for the year, according to Crimean state statistics service Krymsta

http://www.themoscowtimes.com/business/article/demand-for-real-estate-in-annexed-crimea-plummets/522316.html

[JayH]

The problems of Crimean investment-- the lawlessness of Russia!!

Ukrainian Businessman Sues Russia Over Annexed Crimea Airport

A Ukrainian businessman has filed a complaint against Russia in The Hague, saying he was unfairly deprived of his right to operate a passenger airport in Crimea after Russia annexed the peninsula in March 2014.

The Permanent Court of Arbitration said on Wednesday that it had agreed to consider the case, which was brought a year ago by Igor Kolomoisky, one of Ukraine's richest men, and Aeroport Belbek LLC, against Russia.

Kolomoisky's company held a contract to operate a passenger terminal at Crimea's Sevastopol International Airport until 2020. He wants Russia to compensate him for income lost after he was deprived of use of the facility.

Kolomoisky has estimated his losses linked to the airport, near Belbek in Crimea, at $15 million, according to Ukrainian media reports. The claimants say Russia breached a bilateral investment treaty with Ukraine.

http://www.themoscowtimes.com/news/article/ukrainian-businessman-sues-russia-over-annexed-crimea-airport/554982.html

[krimster2]

"Nothing like looking at real information-

Houses for sale in Crimea


http://en.home-poster.net/buy-house/Crimea/

http://en.home-poster.net/buy-house/Crimea/20-Sevastopol/"


Wow!  Whatta ya know, prices are EXACTLY what they were way back in 2007, why to prove that assertion, please allow me to provide you with the 1st page of my sales contract of my primary residence sold in early 2007, which lists the size of the apartment in sq. meters and purchase price, divide the purchase price by square meter and you will get a per meter price that's quite similar to what you posted here



thanks Jay for bring this to my attention and helping me, you and me are "mates" now!!!!

[krimster2]

sorry, technical error, here's the image of my sales contract that shows 2007 prices = 2016 prices

[msmobyone]

Demand for Real Estate in Annexed Crimea Plummets

Russians, the last hope of the Crimean real estate market, appear to have lost interest in buying properties in the contested region.

This comes as an unpleasant surprise to Crimea, which — banking on its coveted climate and coastlines — had hoped for a boom in sales after Russia annexed the peninsula from Ukraine in March last year.

Instead, demand for properties in the region has fallen 60 to 70 percent compared with 2013, said Ilya Volodko, head of the Macon Realty Group real estate consultancy.

Surprisingly, Crimean property owners' optimism was a big part of the problem. Expecting a spike in demand, property owners and developers hiked prices in 2014, sending the average price of residential real estate in Crimea up 46 percent for the year, according to Crimean state statistics service Krymsta

http://www.themoscowtimes.com/business/article/demand-for-real-estate-in-annexed-crimea-plummets/522316.html

Interesting that the article you quote directly contradicts your postings elsewhere..

''prices have collapsed since the Russian invasion as security of ownership has evaporated !''

As the article points out they went UP 46 percent in 2014...

Sure, as realism sets in - they have fallen back

From the article you quoted..now  8 months old...

''real estate prices in Crimea are beginning to fall. Prices have fallen 9 to 10 percent since January, analysts contacted by The Moscow Times agreed — but they are still high compared to similar properties elsewhere in Russia.

The prices of economy-class properties in Crimea start at 42,000-45,000 rubles ($850-900) per square meter, according to data from Macon Realty Group. By comparison, prices in the neighboring Krasnodar region, a popular Black Sea resort, start from about 35,000 rubles ($700) per square meter, according to the consultancy.'

Bearing in mind that Sochi - Krasnodar is 100 miles inland - is much more expensive than most Russian cites - that means Crimean prices are 'silly', but the fact remains that they went up nearly 50 percent - so they are going to have to fall a long  way for your assertion to be correct.

[krimster2]

privet msmobyone,
   it was unclear to me if you were replying to me or Jay?  if to me, the above Ukrainian document is a sale contract for 2007 for an apartment in Sevastopol, the document lists the date bought, sold, sq meter, and sale price calculate the per sq meter price and you can see that it's in line for what's currently being offered in 2016 in Sevastopol, 9 years later, keep in mind that during the beginning of 2014, there was a 6 month complete ban on ALL real estate transactions in Crimea, prices are only part of the story, I haven't seen any reliable sales volume info, it's normal for Russkies to put high list prices on properties because they KNOW that buyers will negotiate downward, this is standard operating procedure, it's a brutal business

[krimster2]

also Jay,
   I'm sure it slipped your mind and you forgot to mention the different regional prices within Sevastopol, for example downtown Bolshaya Morskaya is THE most expensive with their "Stalin" era apartments with the higher ceilings and antique parquet floors, prices fall off sharply from there, keep up the good work Jay, you really helped me out there!

[BillyB]

UKRAINIAN REAL ESTATE: Property prices and hryvnia woes - is now the right time to buy?

I wouldn't put money into Ukraine until threats of further invasion is over. Obama is in his last year of presidency. The last year is the year a president is least likely to take the country into war. In Bush's last year, Russia entered Georgia although there were US troops doing training exercises in the country. If a guy wants to take a chance to win big or lose it all, play the lotto.

[JayH]

also Jay,
   I'm sure it slipped your mind and you forgot to mention the different regional prices within Sevastopol, for example downtown Bolshaya Morskaya is THE most expensive with their "Stalin" era apartments with the higher ceilings and antique parquet floors, prices fall off sharply from there, keep up the good work Jay, you really helped me out there!

 Did not slip my mind-- I tried to post more earlier-- and that issue in particular.

ps  Moby comment was directed at me-- problem is that much changed in a short time-- and dealing with every variation at any given time-has a different answer ( in reference to Crimea)

[krimster2]

totally agree with you BillyB, I wouldn't do it either, I don't think I can remember a time when Ukraine had as much uncertainty and doubt about it's future as right now, also to be clear to the "patriots", this ain't something I'm cheering about, just acknowledging

[krimster2]

good job jayH, you go! 

[JayH]

- that may well not apply to the Crimea where the repercussions of the Russian invasion are likely to continue for some time( years?)

In reference to Crimea--


Advice for consumers when visiting occupied territory

1.  Legal status

According to the current international Agreement between the Russian Federation [RF] and Ukraine on the Russian-Ukrainian state border, the territory of Crimea, including Sevastopol, is a part of Ukraine.  “The territorial integrity of Ukraine within existing borders is also confirmed by a number of other current international treaties and agreements.  Five are given, including the charter of the Commonwealth of Independent States [CIS].

Yes, amendments were made to Article 65 of Russia’s Constitution, adding Crimea and Sevastopol, however Article 16 § 2 of that same document stipulates that constitutional provisions may not contradict the foundations of the Russian Federation’s constitutional order, and this states clearly (Article 15 § 4) that “generally accepted principles and norms of international law and RF international agreements are a component part of its legal system. If RF international agreements stipulate different rules from those envisaged by the law, then the rules of the international agreement take precedence. »

The document goes on to cite the 1975 Helsinki Conference on Security and Co-operation in Europewhich clearly stipulates inviolability of borders and territorial integrity of states as fundamental principles of international law.  It quotes the section (IV under Principles guiding Relations between participating states, regarding territorial integrity, and gives the following in bold: “No such occupation or acquisition will be recognized as legal.”

“Russia has not abrogated the above-mentioned agreements which recognize Ukraine’s territorial integrity, nor has it declared war against Ukraine or signed a peace treaty which could legitimize the annexation of Crimea. Ukraine has not renounced sovereignty over the territory of Crimea

http://khpg.org/en/index.php?id=1445611181

[JayH]

Poroshenko vows to ‘restore sovereignty’ over Donbas, regain Crimea in 2016

http://www.russianwomendiscussion.com/index.php?topic=20112.msg421781;topicseen#msg421781

[JayH]

Key issues to look out for if you are seeking to enter the exciting but challenging Ukrainian residential property market in 2016

Essential guide to Kyiv apartment hunting as property market attracts interest


There are a number of key questions every potential apartment buyer in the Ukrainian capital must ask. Is now a good time to buy an apartment in Kyiv because of currency devaluation? Are we near the market bottom? (Answers: yes for the savvy buyer, and yes, we’re probably approaching the bottom). Where to buy in Kyiv? What is the investment story for Kyiv real estate? (Many factors make residential real estate attractive, chief among them are the structural housing deficit in living space per person in Kyiv and that real estate is by far the most trusted asset class for the majority of Ukrainians.) And what will be necessary to restore Ukraine’s mortgage market? (Analysts don’t expect the market to revive in 2016 mainly due to the unstable hryvnia exchange rate and high interest rates, so cash sales will continue to represent nearly all of home purchases). All of this is helpful background information for those considering whether to begin a property search in Kyiv.

http://bunews.com.ua/industry/item/ukrainian-real-estate-kyiv-apartment-house-hunting-guide

[JayH]

The Ukrainian capital offers attractive options but lack of clarity hampers investment assessments


Exploring Kyiv property investment myths and realities

Are you considering investing in Kyiv’s real estate market and wondering if this would be a good idea? Nearly all of us have been pitched investment ideas. These pitches typically appeal to our emotions (greed and fear - especially fear of missing out) and to our sense of logic (especially numbers and common sense). Any coherent investment story depends on reliable numbers that ‘pass the smell test.’ Yet the investment story for an emerging market like Ukraine can often resemble an investor pitch for a technology startup - long on narrative.

As investors, we would all like to see more hard data, but reliable economic figures for Ukraine can be hard to find due to the size of the country’s shadow economy. Let’s examine some of the most common narratives for residential real estate in Kyiv and see if prevailing conventional wisdom for this market is reliable.


http://bunews.com.ua/industry/item/ukrainian-real-estate-kyiv-property-investment-myths-and-realities

[sleepycat]

What is the purpose of this thread?

Has JayH landed a PR job with the Ukrainian Real Estate Institute or something like that...
 

[AkMike]

That's a silly question.


 The purpose is to inform potential investors about real estate options.

[ML]

Important fact to keep in mind.

Don't be mislead by thinking that because UAH has declined in value relative to dollar . . . that your dollars will buy more in Ukraine.

Many items in Ukraine are priced in USD, even if the exchange eventually occurs in UAH.

Real estate, upscale restaurants, taxi rides, and virtually all imported items, etc., are a few of the items where the suppliers think in terms of USD prices, even if they quote you UAH prices.

The major bargains for holders of USD in Ukraine are locally produced food items, even as they have also risen somewhat.

[krimster2]

I dunno, these prices look pretty cheap to me

http://ankvartal.com.ua/nedvizhimost/zhilaia-nedvizhimost/chastnyi-sektor-doma/

[GatoMoon]

How is buying a property a good investment for you?   Are you planning to sell on when you see the price rise?  If so, will you sell your property without problems?

I strongly believe the best property investment is by doing it in your own country (UK, USA, or whatever) unless you are going to live in that property you are buying, or rent it out

What about learning to do stock market - buy and sell shares - trading.  In this way, you can do it while living in Ukraine

[krimster2]

Hi GatoMoon,
   I actually did BUY and SELL as an investment in Ukraine about 10 years ago, see previous posts in this thread, I averaged between 300 and 500% profit after buying, fixing and selling.  My own personal feeling is that there's too much uncertainty combined with Ukraine's economic woes to make that a viable possibility right now.  I agree with you about investing in your home country, that's what I ended up doing, selling all but one of my Ukrainian properties and returning to the USA and purchasing a home and some income producing properties and I'm really happy with that choice   

[ML]

I dunno, these prices look pretty cheap to me

http://ankvartal.com.ua/nedvizhimost/zhilaia-nedvizhimost/chastnyi-sektor-doma/

Note:  I did not say that RE prices in Ukraine were not lower now than before the Russian terrorists invaded Ukaine.

But it is wrong to ascribe that to exchange rate movements.

The decline in RE prices is due to the higher risk of investing in Ukraine now.

Sellers are still determining what price they want in USD, even as they might accept other currencies at given exchange rates.