Kiev real estate at below the market rate prices

Real estate agents started to not a larger than zero number of deals with luxury property in Kiev and its suburbs. The 750 sq. m. house with a pool and 35 sotkas of land was sold at $400,000 instead of $1 mln, which was the initial asking price, with a single condition that the money are paid in cash in 2 weeks.There were about 10-15 deals of that sort in the last several weeks. Real estate agents tie this to the presidential elections, saying that some businessmen are shedding property to help their business withstand the power change or may be to leave the country.

In Janurary 2010 there were about 200 deals with real estate registered on the market of which 10% with luxury properties. Therefore the trend of shedding the luxury property in exchange for fast cash may seriously drop the prices in the segment.

Real estate market shows no signs of mid-term revival

Number of transactions on the housing market is minimal. This atumn only 1500 transactions per month was registered on the Kiev market, compared to 8900 in 2008 and 13000-15000 in 2007. Experts in the field do not believ that any revival is due for the next half a year. Then it all depends on whether the situation with bank loans improves. Source.