World crisis

Banks did not prove their clients’ trust. The property market is stopped. There is almost no quest for apartments and number of transactions coming to zero. In this situation some of the sellers start panic and they are ready to decrease prices in two times. The most complaint those who need sell property urgently but the rest do not give up and waiting out hard times.

By predictions of many specialists, during 6-9 months prices for property in Ukraine will decrease on 10-15%. After this prices will again grow and they will be much higher than today. The cause of trend’s change to the side of prices’ growth will be liquidity. Hundreds billions of dollars which are now putting to the world economic will come to us as well.

Come the best time for improving living conditions or proper investment for Ukrainian citizens. Purchasing the property is more accessible: prices for property fall down and number of offers grew in several times. Today is profitable to make “big” transactions with property as sum of extra payment decreased according to price fall and number of property grew.



As experience of all past crisis show, the safer money those which were invest in property. And it could be explained as property is always needed in any situation. Also plots for construction, which posses all proper infrastructure, quest is stable even in time of crisis. And it is regular. Any of people understand that plot is an object of investment, the cost of which is always grows. Yes, growth can be non-uniform and, certainly, depends on state of the economy, but even in intermediate term prospect of investment in the land are always economically justified. But there is more effective way of investment, when instead of purchase the land, investment is also in construction of the house. The market cost of the plot is increased minimum on 20-30%. And further will only grow in price.



For today on the Ukrainian land market is absolutely calm, which will continue till 2009. All this time prices will decrease. In this situation – with absents of financial provided quest and price clearness – profiteers will leave a game. Those who want to buy a house or plot using decreasing of prices, is recommended to look after for their changes and do not miss the right period. As only banks will start give credits again, customers who left the purchase for better times will return to the market. What means that prices will start increase.

In some parts of our country the purchase of the property could be seen as a way of investment. In particularly such place could be South Coast of Crimea. First of all, there is no much land on the coast for construction but quest is big for it. Secondly, according to the operators’ estimation, Crimean property continues to increase in price: from the beginning of the year its cost increased on 15-20 %. And in third, there is always the quest for property rent. Moreover, Crimea is still and will be popular place of the rest as for Ukrainian as for Russian.



Investment in property today when crisis is on the beginning stage of its development, could be named not only purchase by low prices apartments and plots by developers with financing difficulties but also investments in foreign property.

By analytics predictions the interest in purchase the property abroad will be increased.

Foreign mortgage is still attractive which became expensive because of world crisis but still less than in our country: abroad the interest rate is 6-7%. Even in spite the fact of care checking of candidates in foreign banks, to get a mortgage in foreign countries is easier for the moment.

Choosing of foreign investments contribute decreasing prices on property abroad as a result of the crisis, which let investors enter the markets which before were unavailable because of financing. Usually for this choose countries which economic reach some stability or is visible the growth of property prices. For such countries refer Spain, Bulgaria, Finland, France, Germany, Egypt, Turkey and etc. In these countries the quest for property from the side of foreigners almost do not decrease, thanks to many years stable price politics on the property market, quality of the property, attractive climate and a lot of sightseeing.

Interest to foreign property appears as a tactic of behavior in conditions of absents other investments.



Those who today are influenced by panic will make unconsidered actions of exit the real estate in a hope that in a half of year he will enter the market and will buy not one apartment but two, probably he lost money. It will be good if they could buy something for this money in a year. More people will refrain from property purchase than worse it will be from the point of view of price growth.

Investing in property let to safe funds of citizens which were taking from deposit bank accounts. After finishing the economic crisis the quest will lead to huge price growth.