The spring enlivening of the real estate market in Ukraine raised a significant optimism among Ukrainian property agents, who expected that the market was close to the bottom. However, it turned out their optimism was a bit premature.

According to the recent newst, the demand only barely raised in a single sector, the cheapest residential real estates in regional centers and the capital. 1-room apartments in Region centers were sold for 20-25 000 USD, and at the same time in Kyiv the price for similar real estates was generally around 30-35 000 USD.
 
Increasing demand even raised the prices up, but only marginally – by 1-3 000 USD per apartment. However, the slow season that begins in the summer is expected to decreased the prices once again.

“The prices have already decreased to the level of 2005-2006,” said Andriy Shulga, president of the Realtors Association in Ukraine. “But the situation was stabilized. The largest discounts were given by those who had the need in money urgently.”

Shulga noted that providing of such real estates will probably no longer grow. However, providing will not dry up because banks will start to sell reclaimed real estates later this year. This is expected to be held in late summer and autumn.

There will also be new real estates coming from the developers. “In 2009 there will be 3 000-4000 apartments thrown onto the market from developers,” predicted Vitaliy Boiko, director of the company Ukrainska Torhova Hildiya. “This is equal to a two-year sales volume in the current conditions, which cannot but pressure the market in this period.”

The realtors’ only expect is the clients of banks who had withdrawn a third of their deposits since last fall, and may be spending them on real estate. “The price for residential real estates – except the budget class- might still go down,” said Boyko.