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Ukrainian Housing Prices No Longer Rising

December 27, 2007

The steep price hike has ended on the Ukrainian real estate market. Virtually all market participants are speaking about such a tendency.

It should be reminded that in 2007 the housing price growth in large cities of Ukraine did not exceed 25%, when in 2006 the price rise totaled 40-60%.

For instance, in the first half-year of 2007, an essential fall in apartment prices on the secondary market was seen in Odesa. And by the end of the summer, the price on the secondary market decreased by 13% and for some kinds of housing – by 20-27%.

It is noteworthy that the record breakers in the price falls were the city’s remote districts. As real estate market experts of the city noted, after the rapid growth of 2006, the market started ‘stalling’.

The experts are in no hurry to make forecasts for the next year. They predict neither dramatic growth nor fall.

It is reported that on the Donetsk real estate market the annual price growth topped 20%, according to local agencies.

It should be reminded that in August the sellers tried to raise the apartment prices by 5-7%, but in the last recent months the dynamics of price growth did not exceed 1% per month.

Donetsk experts assert that in 2008 the market will see a final stabilization, the ‘pre-seasonal’ jumps will smoothen, and the annual price growth will not exceed 12-15%.

In January-September 2007, in Dnipropetrovsk the price on the secondary housing market rose by 5%, and in some segments even slightly fell. At the same time, in the last 3-4 months the price growth was more active.

In Kharkiv, the annual growth of housing prices was around 25%. It is reported that with that the buying activity of the city’s market fell in half.

And in Sevastopol the tendency of uncertainty is traced both among sellers and buyers.

Lviv experts note that in one year the housing prices rose 20-30%. At the same time, they say that one of the factors influencing the housing price growth is the expected holding the Euro-2012 Cup. Old houses in the city center saw the highest growth.

Tags: real estate