15.12.2017

Will the cost of 1 sq.m. of housing increase in new buildings with the growth of the exchange rate?

The fluctuation of the currency rate often raises the question of whether it affects the cost of housing and how exactly. The analytical center "Blago" set to investigate and give an answer.

Experts point out that by the end of the year a hryvnya will demonstrate weakening in relation to a dollar  and the rate will be 27.5-28 UAH / $ 1. Such insignificant fluctuations should not affect the cost of housing. But  2018 year promises  the growth of the American currency.

According to the calculations of the state budget, by the end of next year the dollar will cost 30.1 hryvnia. Such a forecast says that the real estate market reactions are to be expected. Foreign exchange fluctuations will still affect the primary market. The cost of housing in new buildings is influenced by such factors as the cost of construction,  because the price for building materials, for fuel,lubricants and others increases. Rising prices of materials makes developers raise prices per square meter in the new building.  Growth in primary housing prices up to 5% still has to be expected by the end of 2017.  Also, a significant factor that influences the growth of prices is increasing the level of readiness of the house.  The cost per square meter usually changes after the "box" of the building is built, the territory is well-organized and the new building is ready for putting into operation.

As for secondary housing, experts predict more than its subsidence. Since prices are mainly formed in dollars, and in the event of a tangible fall in hryvnia, the cost of apartments in the dollar equivalent will decrease. Demand for such a home also dropped significantly, so the proposals fell. The fundamental changes in this situation should be expected only when the general economic situation in the country will line up.