KIEV RESIDENTIAL MARKET OVERVIEW. JANUARY 2016

 Kiev primary real estate market

 Sale and rental prices of houses

 The Kiev metro rent map

 Individual property reports

INTRODUCTION

SITUATION IN UKRAINE

Movement to the Hgryvna.

Since at least the beginning of this year there has been a strong shift of many companies, diplomatic missions and NGOs to try to move to Hgryvna only contracts even if there is strong linkage to a rate of adjustment linked to CPI, inflation &/or the rate of exchange. At the same time more and more of these institutions want official contracts for their leases.

No doubt this shift to Hgryvna and official contracts is being driven by Terry Pickard the poor state of the Ukrainian economy combined with the continuing Group Chairman conflict in the east. However what seems to be worrying these institutions more is the political conflicts within the Government combined with the very poor performance in tackling that old 'bogey' corruption.

This has really been brought to the forefront this month by the resignation of the Minister of the Economy due to what he says is constant and high level interference from certain political factions. This resignation has seriously 'wobbled' the Hgryvna exchange rate and made many nervous of the consequences if one further such high profile minister should resign. There is speculation even that if Natalie Jaresko was to also resign the Hgryvna could fall to 50 to the $.

With concerns also being expressed by political and monetary bodies abroad about Ukraine's poor progress on tackling corruption and the judiciary that supports it these concerns are only being amplified.

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pickardhomes.kiev.ua MARKET INSIGHT. PRIMARY REAL ESTATE MARKET OVERVIEW

AVERAGE ASKING PRICES PER SQ.M. ON KIEV Kiev Primary Market: PRIMARY REAL ESTATE MARKET IN JANUARY 2015 Getting Clients Is A Struggle ECONOMY CLASS

Last year was the beginning of a new era of struggle on the primary real estate market in Kiev. The number of new residential complexes increased by 30-40 units, while the demand on the market continued to decline.

New market conditions change key competitiveness factors which can be used by a developer. It is not enough to keep prices down or offer discounts. Nowadays clients pay much more attention to internal BUSINESS CLASS infrastructure design and engineering features of the house, its energy efficiency, and, most importantly, maintenance and service management of the house after its commissioning.

Thus, post-sales service has become an important criterion for a purchase decision, which is unfortunately ignored by many developing companies. This is relevant both for prestigious housing and economy class properties. PREMIUM CLASS One more trend of the year was an increase of small studio apartments (app. 35m2) in the total structure of supply. Studio apartments are becoming more popular not only in economy class properties, but business class housing as well. Layouts of such apartments adopt European market experience when kitchen is increased creating a kitchen + living room area and while bedroom becomes smaller.

AVERAGE PRICE FLUCTUATIONS ON KIEV PRIMARY REAL ESTATE MARKET IN 2015

pickardhomes.kiev.ua MARKET INSIGHT. SALE AND RENTAL PRICES FOR HOUSES

HOUSES IN KIEV AVERAGE ASKING PRICES FOR HOUSES IN KIEV, Obolonsky PER SQ. M. Podilsky

Shevchenkivsky

Svyatoshynsky Pechersky Solomensky

Market trend box

Sales: Holosiyivsky • Comparing to December 2013 the number of houses offered for sale in Kiev fell by 30%. The biggest number of houses was offered in Holosiyivsky and Svyatoshynsky districts.

• Due to the devaluation of national currency prices in UAH rose from 11.7% to 32.3%, depending on the district. On the other hand, during the same period prices in USD rose from AVERAGE RENTALS FOR HOUSES IN KIEV 9.9% to 24%.

• In December 2015 the average price of houses on the right bank of Kiev was $1400 per sq. m.

Rentals: BUSINESS CLASS APARTMENTS • Rentals levels for houses in Kiev this month were $5 - $11 per sq. m., depending on the location.

• Usual rental levels for luxury houses in Kiev were around $15 per sq.m., reaching $20 per sq.m.

• The most popular among expatriates are the houses located n Pechersky district on Zvirynetska and Tymiriazievska Streets.

• Among the available options within Kiev city limits tenants prefer houses with minimum 3-4 bedrooms and 3 bathrooms.

• Approximate expatriate residential allowance for a family with 2 and more children was 4 – 5 thousand USD per month.

pickardhomes.kiev.ua MARKET INSIGHT. THE KIEV METRO RENT MAP

AVERAGE RENTAL LEVELS FOR APARTMENTS WITH A GOOD LEVEL OF RENOVATION IN KIEV CITY CENTRE

Rental Terms: Typical lease length: 1 year with possibility of prolongation. Currency of lease agreement: UAH equivalent of prices fixed in USD or prices fixed in UAH with a right to reconsider in case of serious fluctuations. Security deposit: 1 month rent (standard) or 2 month or more (negotiable). BUSINESS CLASS APARTMENTS Rent payable in advance Monthly or quarterly.

Market trend box: • The most popular areas for apartment rentals were Kreshchatyk, , Zoloti Vorota, Palats Sportu, Ploshcha Lva Tolstoho, Maidan Nezalezhnosti, Olimpiiska, and metro stations (city centre).

• Rental levels for apartments located near central metro stations varied from $10 to $20 per sq.m.

• Supply in premium segment apartments significantly outstrips demand.

• Most sought after were apartments with total area of 100 - 150 m2 with 2 – 3 bedrooms and 3 bathrooms.

pickardhomes.kiev.ua CONTACT DETAILS

PICKARD HOMES TEAM

Terry Pickard Natalie Khlystun Daria Nevenchana Group Chairman Senior RE Manager Consultant [email protected] [email protected] [email protected]

Alisa Baireva Yaroslava Dmytrashenko Marketing Department Secretary [email protected] [email protected]

PICKARD GROUP SERVICES Pickard 9, Prorizna St., of. 20 01001, , Ukraine • Brokerage: residential and commercial Tel. +38 044 278 00 02 • Strategic consulting 38 044 270 73 45 • Real estate valuation Mob. 38063 122 54 82 www.pickardhomes.kiev.ua • Investment consulting www.pickard.com.ua www.pickardagricultural.com.ua • Market research

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