The housing market in Ukraine could revive from the middle of summer or with the arrival of autumn, and prices in cities in autumn could grow by some 15%, according to the president of Donetsk-based Gerc Investment and Construction Group, Oleksandr Rotov.
"The market will start operating from the middle of summer or fall. No changes will be seen before the presidential election. Prices will be higher compared to present prices, but we won’t see a [big] jump in prices. They will grow by some 15% per square meter for cities where the population is growing, and in some projects by 30%," he told Interfax-Ukraine.
Rotov said that today the profitability of construction companies on the market with present housing prices is 3-5% on average.
"As soon as the market revives, construction materials producers will increase prices and housing prices will start growing," he said.
He also said that the price of elite projects would reflect the attractiveness of sites and demand.
Rotov did not comment the situation on the housing market in Ukrainian towns where there is no rise in population. He said that postponed demand for apartments could be seen in late 2011-2012.
Gerc investment and construction group of companies was set up in 1990. It is a leading operator on the construction market in the Donbas area. It incorporates 13 companies.
The group took part in a project to build METRO Cash & Carry wholesale outlets in Donetsk and Mykolaiv, as a general contractor.
