The crisis has knocked down all"!!! - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
The global real estate market continues to fall amid...The crisis knocked the Foundation from under real estateThe global real estate market continues to fall amid the subprime mortgage crisis in the United States. The volume of transactions in commercial real estate in the first half fell by a record 41%, to $236 billion, while in previous years the market grew steadily. Affected by the crisis and Ukraine - transactions in the country decreased by 34%, despite the higher profitability of the Ukrainian real estate compared to European.The developers predict that in the second half of the volume of transactions will increase in Ukraine, although they acknowledge that most of them will be forced.Volume of deals global commercial real estate in the first half of the current year decreased by 41%, to $236 billion compared with the same period last year, as stated in yesterday's report of the consulting company Jones Lang LaSalle (JLL). The head of the European Department of financial markets and investment JLL Tony Horrell believes that the performance has deteriorated because of changes in lending conditions, which have become less available and more expensive because of the collapse of the world market of mortgage securities backed by commercial real estate.The market has left investors using significant amounts of debt capital, and those that use their own capital, selectivity, anticipating a decline in prices, said Mr Horrell.The decline in investment in commercial real estate will continue - this year they will be reduced by at least 35%, predicts JLL. But the number of forced sales of objects, on the contrary, will grow due to the instability of the credit market.According to Tony Horrell, investors who are able to allocate funds for the purchase of real estate in this period, in the future will have more opportunities because of the low competition will be able to purchase it at a lower price and favorable conditions.The crisis has also affected the commercial real estate of Ukraine. According to Colliers International, in the first half of current year the volume of transactions decreased on average by 34%, to $200 million, Many investors have postponed the deal because it is unclear what will be the consequences of the global mortgage crisis, says the report of the company. More than half of transactions were carried out by foreign companies, published in this period on the market: Meyer Bergman acquired the shopping center "Aladdin" in Kiev, Akron Group logistics complex East Gate Logistic and Europa EEF - logistic facility Logistic Park East I. "the Crisis situation in the world spurred investors to invest in commercial real estate of the CIS countries",- said the Director of JLL in Russia and the CIS Vladimir Pantyushin. He explained this by the fact that in the CIS markets with higher profit margins, which undoubtedly attracts investors - average capitalization rate in the segment of office real estate of Ukraine is 9-10%, in Russia - about 8%, and in Europe - 5%.The developers hope to stabilize the commercial real estate market of Ukraine in the second half. According to managing partner of Concorde Development of Isak Valeria, investors, deposited buy in anticipation of the consequences of the crisis will catch up. "Dynamics of growth in the volume of transactions will be maintained by and at the expense of 'forced sales' objects developers who need their own capital," says financial Director at FIM Group Pavel Shmarov.