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NBU announced the end of the construction boom. What awaits the real estate market in 2019?

The construction boom in Ukraine has come to an end. This is stated by the National Bank in its latest report on financial stability for December 2018, according to which the increase in the supply of new apartments last year has significantly decreased.

Over the past 9 months, the volume of housing commissioned in Ukraine fell by 36%, in Kiev by 45%, and in Kiev region by 33%, stated in the NBU

Many experts explain this by the fact that construction companies are currently limited in available funds, which would allow them to continue to maintain a given high rate of development.

Although the NBU report announced the end of the construction boom, the representatives of the National Bank themselves in their comments were not so categorical. The decline by 33-45% is also associated with a very high comparative base (in 2017, in the first three quarters, the number of new buildings in Kiev almost doubled). Also, in the summer of 2017, a new classification of buildings was introduced, which was reflected in the procedure for obtaining documentation. Therefore, many companies were in a hurry to complete the facilities before these innovations.

Therefore, in the coming year, developers are likely to focus mainly on the sale of “hung” apartments and even try to raise prices on them. However, in contrast to this news apartments in the secondary market will continue to fall in price.

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