“Difficult times are expected. The expert said what will happen to the real estate market by the end of the year. By the end of the year, the dollar is expected to rise by UAH 2, which will lead to an increase in the price of new housing. The expert advises developers to revise their investment strategies due to the decrease in the purchasing power of the population.”, — write on: unn.ua
Context
The Verkhovna Rada began consideration of the draft State Budget for 2025. Deputies have until October 1 to submit proposals, and the first vote will take place until October 20. The document sets the exchange rate at the level of 45 hryvnias per dollar. Olena Sosedka previously predicted that the dollar exchange rate will continue to rise, by the beginning of 2025 the price of the currency may rise by approximately 2 hryvnias.
The growth of the dollar exchange rate to the predicted level of 43-44 hryvnias for one dollar in 2024 will have a significant impact on the real estate market in Ukraine. First of all, this will lead to an increase in the cost of construction materials, most of which are imported, which will increase the cost of construction. As a result, new residential and commercial properties may become less affordable for a wide range of buyers
In addition, according to her, the devaluation of the national currency usually forces investors and developers to approach new projects more cautiously due to increased risks and income instability.
At the same time, those who have already invested in real estate may see an increase in prices for existing objects, because in crisis situations, real estate often becomes a “quiet haven” for capital investments
At the same time, the expert does not rule out that the increase in the dollar exchange rate may weaken the purchasing power of the population, which will lead to a decrease in demand, especially in the segment of residential real estate.
Thus, difficult times are expected in the market for both buyers and developers, which requires a more careful approach to planning investment strategies until the end of this year and next.
We will remind
Ukraine and the IMF reached an expert-level agreement on the fifth revision of the financing program in the amount of 15.6 billion dollars. According to the media, the IMF will probably demand from Ukraine a devaluation of the hryvnia, a reduction in the discount rate and an increase in taxes. Fulfillment of these conditions will allow Kyiv to receive the next loan tranche in the amount of 1.1 billion dollars.