Kharkiv Real Estate
September, 12 2018. The experts of the EBA Real Estate, Investment and Strategic Development Committee in Kharkiv are:
- Igor Balaka, the Head of the Committee & Krona PPF Director General
- Abdurakhman Shaykhalov, Step by Step Group of Companies owner
- Yuri Kostoglodov, ICOM Capital Executive Partner
The speakers shared the most up-to-date information re RE-2018 current tendencies and development opportunities; investments in Real Estate sector; energy efficiency as a driver for RE market growth, etc.
The key statements of the meeting are the following:
- Kharkiv is one of the: 1) pioneers of RE market development in general and, particularly, 2) leaders of the primary housing market (approx. 70% operation in the housing RE market).
- The primary housing area innovations are cooperation between RE developers and banks; residential property leasing; active competition among developers etc. For the latter, the specialists warned about the possible problem of incomplete constructions, which may cause high risks for potential investors.
- The secondary housing tendencies: competition between developers (‘trade in’), build-to-suit (foreign students, young families, passive investors), RE market segmentation.
- In 2018, the development of the commercial RE market becomes sustainable. At the very beginning, the IT-sector expansion served as a catalyzer for such process. This led to the rising costs for commercial RE (up to 20-40% compared to the 2017 figures).
- The most topical energy efficiency issue, in particular, in the EU, is the provision of a legislative framework for energy-efficient housing conditions + relevant perspective projects’ implementation (e.g., Basic House).
We are grateful to the experts for an interesting event and active discussion!