OREANDA-NEWS. March 04, 2013. Last year, the primary housing market in Ukraine demonstrated steady growth. This is confirmed by the head of sales of construction company "Megainveststroy" Constantine Zhilyaev, who spoke about the trends in the primary real estate market, plans and prospects of the company.

- Last year, there was a general revival of the real estate market. According to the Ministry of Justice, in 2012, the number of transactions for the purchase and sale of real estate has increased by almost a third compared with 2011. Did "Megainveststroy" feel a revival of the market? How many square meters of housing were commissioned, how many were sold?
- The revival is certainly observed, it is associated with the increased confidence of the investors as well as to the fact that because of the advertised crisis – this is the only way to save money by investing in the construction.

- So, you think that investing in square meters today is effective?
- Yes, of course, investment in square meters is one of the most effective tools for investment funds.

- What's the situation with the pricing in the primary market; according to your personal forecast will the prices continue to rise?
- Today, the average price per square meter of economy class housing is UAH 5.8 thousand. According to our forecast for 2013 the price of a square meter is expected to rise somewhere by 10%.

- Is there any credibility of buyers to the primary real estate? Now a lot of people say that the primary housing is built poorly. How does "Megainveststroy" approach to construction of its facilities?
- Consumer Confidence, of course, there is, but only to those construction companies who have earned an excellent reputation through years of working in the construction market of Kharkov.
As for the quality of new buildings, for "Megainveststroy" this issue is always a priority. We have constantly in construction the specialists in the field of technical inspection, which carry out quality control of construction materials going to the objects.

- Which housing is the most popular among the citizens of Kharkov today?
- During the construction of the objects we want to reduce the size of apartments due to a functional layout, so that the budget of buying an apartment in a new building was on par with the acquisition in the secondary market. We see a concrete result of our policy, namely, strengthening demand in the economy-class housing.

- We plan to commission two houses: 9-storey house on ul. Mehanizatorskaya and a 24-storey building on av. 50 let VLKSM.
- Can you think of any negative factors that more or less constrain growth in construction and residential sales in new buildings?

- This, above all, the outstanding domestic issues and legal risks. So far, in the houses of a number of property developers have been cases of abnormal functioning of the communication systems (electricity, heating, hot water) in the already commissioned houses. It is also often violated terms of commissioning, even after timely or nearly timely completion. The existence of these problems is constraining the demand of those who purchase housing, and do not invest in square meters. I can assure the buyer that none of our facilities has problems with communications; we always adhere to the promises concerning the commissioning of our new buildings.

Also, a big problem is that mortgage terms are now inaccessible to most people in need of better housing. The main problem, of course, is high interest rates. Last year, the portfolio of mortgage loans of Ukrainian banks to population declined by 17%. However, in this year, though there has been one positive development - from the beginning, the average real rates declined for all terms of lending.

We understand this, so we try to solve it together with our partners, the main ones of which is PJSC "MEGABANK". In particular, for the recovery of the mortgage market today, "MEGABANK" launched the action "Spring in the new house". This action applies to the house through the streets of Upper Gievskaya and Feuerbach. These houses have already been put into operation. Also in action are involved two houses that are nearing completion and will be commissioned this year. They are located on the street Mehanizatorskaya and avenue of the 50th anniversary of the Komsomol.

Under the terms of the action, the client, making a minimum down payment of 30% of the sum of the cost of housing, can missing means borrow at "MEGABANK". In the first half of the year of using the credit resources of "MEGABANK" a low interest rate of 16% in local currency is set. Such credit is valid for 20 years with an option for early repayment. After a year and a half the interest rate will be raised to market levels.

- Have you previously collaborated with "MEGABANK" in terms of mortgage?
- Yes, of course. With "MEGABANK" we are working closely on housing loans, which our company has been building since 2006. Only with the participation of "MEGABANK" under the "Solar House" are built three and three more objects are being built. From the beginning, the construction company focused on affordable real estate market, which, as experience has shown, is by far "more alive" than elite real estate market. "MEGABANK" supported us in this, so they tried to offer potential buyers not abstract "square meters", but really comfortable lodging. Each house, built with the participation of "MEGABANK", has a "feature" and is designed for a specific segment of buyers.  The house on the street Gvardeitsev Shironintsev has exceptionally convenient location with well-developed transport infrastructure. Also, this is still the first and only Kharkov 16-storey brick house. All the apartments there have long been sold out. Of these, about 15% were bought with credit instruments of "MEGABANK". Across the road from the house another house is being built – 9-storey, with underground parking and two floors, which will be brought to commercial premises.

Interesting project is a three-storey house in the center of the city on the street Feuerbach, which falls under the campaign "Spring in the new house." There is a stereotype that the housing of economy class - it's the suburbs and the city center is the territory of "elite" housing class. In fact, there is a buyer who wants to live in the center, but it does not need hundreds of square meters. All he had left, – apartments in old houses. "MEGABANK" offered an alternative – economic class in the center of the city.

The house on the street Upper Gievskaya, apartments which can also be purchased during the action "Spring in the new house," it is generally continuous innovation. First, in each apartment there is a self-heating, which at current prices for heating and hot water can save hundreds of hryvnia every month. Secondly, all of the apartments on the first floor have private entrances. Thirdly, a courtyard and a separate house territory with ground garages. Fourth, convenient place – Holodnaya Gora: it is not the center, but the area with very convenient transport interchange and infrastructure. And all of this is in the price range of economy class – offered only one-and two-bedroom apartments.

The next project, which is in the final stage of construction, – 24-storey house with underground parking in Saltovka, on Avenue of the 50th anniversary of the Komsomol, which I also mentioned, speaking of the action of "MEGABANK". There will be three-bedroom apartments of 107 sq.m. Comfortable, lived-in area and the successful planning of apartments give confidence that this real estate will find a buyer.

In general, the main strategy of a successful housing program is to build housing for the widest range of customers, without going into the problem of "elite". Because, as the experience of the past few years has shown, the future of real estate as an object for investment may vary depending on the overall economic situation. But no situation will stop buying process of housing for life.