Monday, 16 January 2012

Commercial real estate margin reaches levels of 2004-2005, says expert

Kyiv, January 16 (Interfax-Ukraine) – Selling prices of offices and trade space in 2011 fell by around 10-12%, while their rent rates grew by some 10-12%, the chairman of the committee for analysis and real estate market statistics at the Union of Realtors of Ukraine, and the director of the assessment department at Samson, Vsevolod Zhoholev, has said.

"A stabilization of selling prices on the commercial real estate market [offices and trade space] was not registered. Rent rates in the U.S. dollars grew by 10-12% and the selling prices fell by the same figures. The said pace is seen on the offices and trade space markets. Today the commercial real estate margin has reached its maximum historic indicators of 2004-2005," Zhoholev said at a press conference at Interfax-Ukraine in Kyiv on Monday.

He added that last year vacancy of offices and trade premises in Kyiv narrowed.

"There are fears that it could expand unsteadily – if crisis in the economy continues, investors could find no leasers," he said.

The expert said that in the first half of 2012 the selling prices of offices and trade space will be stable, while rent rates could continue growing.


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