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16:49
FROZEN CONSTRUCTION PROJECTS COULD BE SOLD AFTER REDESIGN AND RECONSTRUCTION, SAYS EXPERT

Kyiv, July 28 (Interfax-Ukraine) – Constructors of housing and commercials real estate projects, which are frozen now, should redesign and reconstruct them in order to sell them, according to Oleksandr Popov, the director of the Archimatika design group.

"[Frozen] projects in the present conditions are in low demand due to their low quality and poor design, so it's impossible to find investment for their completion," reads a group press release, citing Popov.

He said that today only high-quality projects with well thought-out concepts could gain investment.

"Today, not everything that is built is sold. Buyers give money for quality, knowing that later this real estate will be attractive for investors. If earlier demand dictated skyrocketing prices for square meters, now only the competitive advantages of projects [determine their value]," Popov said.

He said that the production value of projects after redesign and later reconstruction could grow by 20%, although the commercial value of the building could jump by 40%.

"The redesigning would cost 1-10% of the project's value. Reconstruction is a rather expensive thing, as it's more difficult to change an existing [building] than to build new things. The production cost after reconstruction would grow by 40% on average, thanks to the quality of the product," Popov said.

Archimatika design group was established in 2005. It provides a full range of architectural and construction design services.

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