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12:42
AVERAGE PRICE OF ELITE HOUSING ON SECONDARY MARKET IN KYIV 21% DOWN IN H1, 2009

Kyiv, August 5 (Interfax-Ukraine) – The average price of elite housing on the secondary market in Kyiv in the first half of 2009 fell by 21%, to $7,849 per square meter, according to a review of Knight Frank LLC Ukraine real estate agency.

According to the review, in the period the supply of elite secondary housing fell by over two times compared to 2008. The owners of elite housing have suspended sales and are instead leasing housing until prices in the segment stabilize.

According to company experts, the owners of elite housing who bought property with the purpose of reselling it and earning money have started leasing housing, as it is unprofitable for them to sell property on a falling market.

"As a result, supply significantly exceeds demand, and rent rates for elite housing in the first half of 2009 fell by 15.4%," the company said.

The company said that flats with a price of $3,000-4,000 per square meter occupy 40% of total demand for elite housing rent, and flats with a price of over $8,000 per square meter occupy the least part of the demand.

Knight Frank was founded in London and provides a full range of agent and consulting services for developers, real estate owners and users, including businesses and individuals.

The total value of the company's contracts in 2007 exceeded $700 billion, and its income was $704 million.

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