The builders ran out of money and buyers - news about real estate, Kiev, Kyiv region. Real Estate In Ukraine
Medium and small construction companies in Kiev was on the verge of ruin. Bankers, burnt by the liquidity crisis, stopped issuing loans to both developers and home buyers. The market reacted instantly. Sales in the primary is down 20%. According to experts, this is only the beginning. A consequence of the financial problems can be a work stoppage in major parts of construction sites. It is possible that it will reach a price decline.Just ran out of moneyAs previously reported by "DS", serious problems with the financing of small and medium-sized construction firms have begun to experience two years ago, when the primary market has left private investors, frightened by the Scam with the group of companies "Elite-Center." Then the developers are left without "buying" money out Bank financing, although some companies had to go for change of ownership, agreeing on investment in exchange for the sale of shares. However, in some cases, to save the situation failed. As earlier wrote "DS", was frozen objects "Kyivmiskbud" and "Ah-rabedprazole", and the company fell into bankruptcy. Last month it emerged that similar challenges are faced and gradostroi", which builds housing in Zdolbuniv, 13, and the suburban village Mikhailov-ka-Rubezhivka. According to CEO Victor Vlasov, he had to sell "gradostroi" after the scandal with "Elite-the Center", because of which they have had difficulty raising funds from private investors. However, the new owners decided not to invest in the completion of construction, and work was stopped.Experts agree in opinion that now such problems can occur on almost any capital construction project, noting that in the last month in Kiev developers began the second wave of financial difficulties. The mass market leaving banks and buyers.According to the head of the investment Department of the company "Novo-Budova" Dmytro Kolisnyk, in the primary market, the share of transactions with attraction of credit funds in recent months has dropped from 50-60% to 40%. And the total number of transactions fell by 20%.As stated by the General Director of "Trajectory" Sergey Klimenko, the tightening of credit conditions has caused stagnation on the real estate market, where customers also after the refusal of banks to grant new loans, tore sedackove contracts for the purchase of objects costing $300-600 thousand Although, according to experts, the situation will normalize soon.Moreover, financial institutions decided not to limit end-users and not lending itself to the builders. According to market participants, recently, some banks began to refuse the transfer of money stroykompany Yam even has the open lines of credit. "Some of the top ten financial institutions generally closed position in lending to builders," says General Director of the company "Glavstroy" Artur Margaryan. However, according to Mr. Klimenko, most of the limited funding will impact on the primary market, where possible the emergence of new "Elite-Center." "The company will create the appearance of construction sites. At the same time, the lack of funds from both private investors that banks have tightened credit conditions, and the banks will cause a delay in the timely commissioning of the facilities may increase from the current standard of six months to several years", вЂ” said the expert.Of paper instead of housingA good illustration of APB provisions of a number of construction companies have become the data of rating Agency "Credit-Rating". Its analysts reported last week about the increase in the number of technical defaults on the task of building bonds in the first quarter there were eight to ten for the whole of 2007, Most of these companies operate in the capital market. We are talking about the inability of the Issuer to timely and fully perform the obligations on transfer to the investor rights guaranteed by real estate. ".