FIABCI-Ukraine President Speaks at Expert Panel on Development and Investment Trends
On October 12, 2021, an event was held in the format of a discussion of real estate, construction and investment market experts, the main organizer of which was the law firm Olsten Partners Law Company.
The experts of the event were:
Lev Partskhaladze, President of the KBU, former Deputy Minister of the Ministry of Regional Development,
Serhiy Kruglyk, Adviser to the Kyiv City Mayor on Finance and Investment,
Rostyslav Nakonechny, Head of the Kyiv Municipal Bank Project Office, Deputy Chairman of the Board of IBOX BANK,
Vladislav Konnov, Director of AVM development,
Victor Zaboenko, Sales Director of SAGA Development,
Dmytro Kovhanych, President of FIABCI-Ukraine,
Dmitry Vasiliev, Chief Architect of Archimatika,
Victoria Zhurbas, Coworking Association of Ukraine,
Yaroslav Boyarkina, head of the representative office of the international company DC PRIVILEGE.
Host and co-organizer of the Forum - Chernyavska Bohdana opened the event, thanked the friends of the event, including NAI Ukraine and JCI Ukraine, partners and sponsors: the Confederation of Builders of Ukraine, FIABCI-Ukraine, the developer "Intergal-Bud", the development company "SAGA Development" "Archimatika", "RE / MAX Central", development company "AVM Development", development company "Riviera Estate", "Zagorodnaya Real Estate" Magazine, and others.
The discussion took place in two panels. The first part of the discussion on "Problems of the real estate investment market" was moderated by Olsten Partners Managing Partner, Chairman of the Project Investment Committee, and M&A of the Ukrainian Bar Association Olesya Romanenko.
The key conclusions in the first part of the discussion were:
1. There are no vacant plots of land in Kyiv that are ready for housing, and the solution to this problem can be the construction of industrial zones. The idea of joint work on the strategic development of the city between the city administration and developers was proposed. Lev Partskhaladze called for joint participation in the development of urban planning together with the Confederation of Builders of Ukraine, which takes an active part in the real estate market and construction of Ukraine.
2. The state implements a number of laws aimed at total control over income and takes all possible measures to control the taxation of such income. Bills that significantly change the taxation of real estate sales were discussed.
3. Financial monitoring of the origin of funds, including investments, has already become a problem for developers who cannot provide real estate to investors who cannot confirm the origin of funds for the purchase. Rostislav Nakonechny, Deputy Chairman of the Board of IBOX BANK, suggested that such control would only intensify.
4. The new bill on guarantees of investors' rights when buying a home in the primary market aims to protect investors from unscrupulous developers, but on the other hand, such a law creates obstacles to the work of development companies. Vlad Kononov noted that in the wording of the bill, in which it exists today, its full implementation is impossible. Although, he as a representative of the development company and other participants in the discussion supported the idea of such a bill.
The second part of the discussion on "Trends and investment attractiveness of the real estate market" was moderated by the head of the consulting department of NAI Ukraine and the Secretary-General of JCI Ukraine Yulia Kuznetsova.
The key conclusions in the second part of the discussion were:
1. Changing the focus of development and rotation of developers.
The trend that is already being implemented in many European cities is 15-minute availability. With the advent of the pandemic, priorities have changed, and if people used to pay attention to the proximity of housing to the place of work, now the focus has shifted to lifestyle.
Developers have increased demand for the construction of multifunctional complexes with developed infrastructure. The future lies in cluster development.
People want comfort, so if before hotels copied housing, now housing copies hotels.
The developer's work on the infrastructure of the residential complex is an investment with a high future margin. This was confirmed by Viktor Zaboenko, Sales Director of SAGA Development, and Yaroslav Boyarkin, Head of the representative office of the international company DC PRIVILEGE.
2. The concept of "City in the city" and a holistic architecture that takes into account the context of the territories
There is a tendency to decentralization. Dmytro Vasiliev, the chief architect of Archimatika, knows this better than anyone else.
Homebuyers' focus on "where will I live?" shifted to "how will I live?"
The concept of "City in the city" allows people to set their own rules and follow them within such an ecosystem - both behavioral and visual. Victor Zaboenko, Sales Director of SAGA Development, spoke about the wishes of customers.
3. Turbulence of commercial real estate and rotation after the pandemic: coworking, street retail, and investment demand in new projects.
Coworking accounts for 4.9% of all office real estate in Ukraine but is in high demand today. The tendency to place coworking spaces in residential complexes or shopping malls has existed abroad for a long time and is currently growing in Ukraine. Victoria Zhurbas, the founder of the Coworking Association of Ukraine, told about it.
4. Green development or trend towards environmental friendliness.
In Ukraine, BREEAM or LEED certification is the only marketing position for most developers. Ukraine is just beginning to get acquainted with the fact that there is a "must-have" in Europe.
5. Lessons learned for real estate stakeholders and expectations for 2022.
Under the influence of lockdowns in Ukraine "left" more money than in previous years, and wages rose to 25%. Ukrainians have about $ 30 billion in their hands. Ukrainians are accustomed to investing their savings in real estate, which remains one of the main areas for investment, so in many projects of developers - buying apartments for capitalization in the early stages reaches even a share of 50%. It was interesting to listen to Dmytro Kovhanych, President of FIABCI-Ukraine. Dmytro also spoke about the concept of the Mallow island project, which a group of experts developed to address a number of environmental issues in cities, but also a project that will create a new way of life - life on the water. An autonomous community with a certain set of values will create a sustainable trend and attract not only buyers but also investors.
For Olsten Partners Law Company, such an event was organized for the first time. The idea to discuss with the participants of the construction and real estate market and hold such an event came from the organizers because the company since 2007 solves legal cases in the field of real estate and investment, land law.
The main purpose of the event is to form a quality investment community in Ukraine and discuss important issues in the field of investment, educating investors and all market participants about current issues and trends.