EEA Real Estate Forum & Project Awards 2017 — the Forum and the Award for projects in the real estate to countries of Eastern Europe which is going to be held on November 23 in Kyiv, Ukraine.
CBW had an interview with one of the speakers of forum Mr.Igor Zabulonskiy – KARKAT FASHION UKRAINE, CEO.
What are 3 main trends of the real estate market in Ukraine? What is the future for?
The main trend is the shock rate of house construction. Despite the fact that demand is not growing, the number of square meters offered to the market is increasing, and the foundations of new buildings and blocks are being laid. Without a government mortgage lending program, the situation threatens to turn into a crisis.
At the same time, the market for office space is stagnant. New office centers can be counted on the fingers of one hand. The huge reserve of vacancy, accumulated in previous years, is slowly declining. Practically not heard about laying the foundations of new business centers. If we maintain or increase the current pace of business activity in a couple of years, we may face a shortage of office space.
The construction of shopping and entertainment centers is going on in spurts. The crisis stopped most of the construction projects. Having seen signs of warming, many developers have resumed construction. The results of their work will be seen in the next year or two.
What are 3 main trends of the retail market in Ukraine? What is the future for?
The retail market has come to life in the last year – turnover is growing, vacancy in the shopping center is decreasing. The growth is still modest, as the incomes of the population grow slowly. Customers who survive the crisis tend to postpone the “black” day and spend less on current needs. They are more picky about prices and are ready to go around a few stores before making the final choice. Nevertheless, positive signals of the market have already attracted new players – several large world networks announced the opening of stores in Ukraine. Without further ado, smaller retailers also started to follow.
Even before the market saw the landlords and began to raise rents, trying to hold them to the pre-crisis level. In conditions of sluggish trade turnover and creeping devaluation of the national currency, not all tenants are able to withstand such a burden. As a result, many shops are closed. In their place come optimistic newcomers. Time will tell if they can survive. In the near future, competition in retail will worsen. Shopping centers will compete for visitors, shops – for buyers. The opening of new shopping and entertainment centers will sharpen the intrigue.
What is the positive aspect of the EEA Forum and Project Awards for the Ukrainian market and for the participating countries?
Getting new information, a lively exchange of opinions are vital for the development of both the professionals and the companies they represent. The forum just gives this opportunity. All countries of the region are in similar conditions, but at different stages of development. Discussion of problems and achievements of these or other countries makes it possible for the rest to avoid common mistakes, find solutions to difficult situations or new business development options.