Development of commercial and residential real estate

Investment activity is primarily associated with risks, which often repels ordinary people from investing their capital in the development of any business. Both residential and commercial real estate in Ukraine is not developing enough today due to a lack of investment. Experts explain that this is due to the fact that potential customers are deterred by a large number of unfinished buildings throughout the country. Nevertheless, if the money had been invested, then the construction would have been completed. As for commercial real estate, this fera would be widespread in Ukraine, since such buildings create the entire surrounding infrastructure.

The development of small businesses can successfully develop today thanks to the opening of numerous shopping and entertainment centers.  According to the president of UTG, there is a good prospect for the construction of new centers in Ukraine. According to analysts' forecasts, their number will increase over time and in a year and a half there will be significantly more of them. Therefore, the sale of business in Ukraine, especially small, in particular, retail trade, will become more relevant and profitable. It should be noted that the rapid growth in the number of such large-format multifunctional points will make Ukrainian commercial real estate more attractive for investment by foreign investors. An increase in the number of retail spaces and their competent placement will also contribute to this. However, it follows from this that along with the strengthening of entrepreneurial activity, competition between individual sole proprietors and companies will increase, therefore, it is possible to predict an improvement in the professional base of employees of retail outlets, as well as improvements in the quality of customer service and a non-standard approach to advertising and marketing activities, the use of new concepts in business management.

The State Statistics Service of Ukraine notes the fact that in 2012 the number of completed real estate transactions decreased by 17% compared to the same indicator a year earlier. Enterprises providing intermediary services during the "purchase and sale" of real estate in Ukraine earned a total of 135 million hryvnia. The statistics were compiled by analyzing reports from 362 different enterprises and business entities in the real estate sector. It is interesting to note that most of this income - 68.4%, was received when concluding transactions with non-residential real estate. Housing accounts for only 26.4% of all income, and land plots have a share equal to 5.2%. However, the number of transactions is very different from the revenue indicators. Residential real estate has the largest number of concluded agreements - 59.2% of the total. The purchase and sale of land plots accounts for 31.7% of the total number of transactions, and the non-residential fund - only 9.1%. Despite such a difference in the number of contracts and income received, the area of housing put into circulation - residential and non-residential, is approximately the same: 300 and 291 thousand square meters, respectively. According to statistics, the total number of transactions involving intermediaries in 2012 decreased from 12,900 to 10,700 - that is, by 17%.

Read on: Real estate in Bulgaria