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NAI Ukraine: Foreign Investors Will Start Investing More Actively in the Ukrainian Real Estate Market in 2017

10/20/2016

NAI Ukraine: Foreign Investors Will Start Investing More Actively in the Ukrainian Real Estate Market in 2017

 

Vitaly Boyko, CEO NAI Ukraine and Urban Experts said that Ukrainian real estate market is attracting more attention from foreign investors. He told it during the press-conference in the news agency "Interfax-Ukraine", dedicated to the EEA Forum & Project Awards 2016.

According to Vitaly Boyko, a large amount of capital has assembled in today’s world, which is looking for a higher profitability than those in the Western European development projects.

Real estate market income in Western Europe - 2-4%, in Eastern Europe - 5-6%, and in Ukraine investors can earn 2-3 times more - 10-12% on the acquisition of a successful commercial real estate.

Today in Ukraine quality property facilities of European level appeared. "All the investment bankers and asset managers on ExpoReal conference, we took part in, declared that their clients are faced with the problem of lack of quality real estate objects for investment, and competition among creditors and investors is too large, which is leading to a reduction of income to economically Unprofitable level, - Vitaly Boyko said. - The situation in Ukraine has considerably changed in recent years. International consultants and architects are being involved for the development of large-scale projects. Our building industry is one of the largest in Europe and it is 3 million square meters in Kiev and the region. Demand is consistently high from renters for retail areas. Vacancy in business centers and logistic complexes is being reduced. These factors increase the attractiveness of the Ukrainian commercial real estate market for international investors".

NAI Global has released a report for the first half of 2016, which shows that the number and volume of transactions in Ukrainian real estate is ahead of Russian. "This indicates the formation of a trend. Today, investment in Ukraine is interesting not only to Western European investors, but to NAI Global, which possess the real estate assets in amount of 150 billion. By the way, the NAI access to the Ukrainian market in the face of NAI Ukraine is also a good signal, "- Vitaly Boyko said.

Investors have reduced the range of risks they expect in Ukraine. Nowadays investors are held back by Russia's aggression and high levels of corruption. "All other risks are acceptable. There is a lack of information concerning our market, - CEO NAI Ukraine and Urban Experts said. - Such projects as the EEA Forum & Project Awards 2016, Europaproperty.com and Ukrainian Real Estate Club help to spread accurate information about the best Ukrainian facilities and commercial real estate projects".

Source

NAI Global

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