Two factors that must be implemented so that developers have someone to build for and Ukrainians have something to buy for
No matter how many “experts” shout on Facebook that Kyiv is not rubber, that certain areas are becoming like Shanghai, and what else they won’t write, simple arithmetic says the opposite.
Today, each Ukrainian has a little more than 20 square meters of housing. This is official statistics. While similar figures in other countries are much higher. In neighboring Poland, each inhabitant has 25 square meters, in Germany – 39 square meters, in the USA – 70 square meters.
As we can see, there is room for growth. But if we look at the construction rates, which would seem to be quite high, the statistics are negative again. In Kyiv, about 1 million square meters of housing are built annually, while the average for Ukraine as a whole is 10 million.
Despite the large figure, only 2% of the entire housing stock has been built in the country since 2000. At the current pace of construction and commissioning, only 0.25 square meters of housing per year is available to 1 Ukrainian. And this is catastrophically low.
Another important factor is the purchasing power of the population. After all, if there is no one to buy, then why build? Two factors that, in my opinion, should be implemented so that developers have someone to build for, and Ukrainians have something to buy for.
- One person’s salary should be enough to buy 1 sq. m. Then every family of two able-bodied people will be able to buy housing on installments without any problems. Unfortunately, today this indicator is far from desirable: the average cost of a square meter is 22 thousand UAH, and the average salary in Kyiv is 15 thousand UAH.
- Stimulating the industry from the state. Affordable housing programs are an excellent option. A person can buy an apartment immediately and on good terms. The developer, for his part, is provided with work, which means that budgets of different levels will not remain empty either. A mortgage is also available here, which can become a catalyst for the market.
So far, unfortunately, neither the first nor the second, in fact, are available. This means that developers are forced to survive on their own, coming up with and implementing options that are beneficial both for construction and for the purchase of these meters by a person.
Kyivmiskbud, for example, cooperates with two banks – the state-owned Ukrgasbank and Kristalbank – so that the terms of purchasing real estate are as variable as possible for any buyer. You can take out a long-term mortgage or a short-term one at a low interest rate. There is an opportunity to take an interest-free installment plan from the developer, or buy for the full price and get a discount of up to -20%.
There are many options, if there is a need. And, judging by the statistical data given at the beginning of this blog, there is still one.
Ihor Kushnir, Chairman of the Board – President of HC Kyivmiskbud, Doctor of Law
