Welcome to Ukraine
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Investore Ukraine: Today and Tomorrow Investment Climate in Ukraine Commercial Real Estate Results and Prospect Ancor Real Estate Services
Our personal and professional approach allows us to provide each individual client with the most accurate assessment of the Investment and Development opportunities backed up by our unique in depth experience of the Ukrainian property markets. Please feel free to contact us to discuss the many ways we can work together.
Investore
Investment, Development
O
ur personal and professional approach allows us to provide each individual client with the most accurate assessment of the Investment
and Development opportunities backed up by our unique in depth experience of the Ukrainian property markets. Please feel free to contact us to discuss the many ways we can work together.
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Ukraine Today and Tomorrow Ukraine's future acceptance to WTO, is welcomed by the European Union. This will open the door towards an establishment of a Free Trade zone between Ukraine and the EU.
U
kraine is the second largest, country in Europe in terms of land mass, and sixth largest in terms of
population. Ukraine is highly urbanized, with a popula tion of nearly 50 million people, almost two thirds of whom live in cities and towns. The dynamic development of the Ukraine's economy has b e e n v i e w e d b o t h i n U k r a i n e a n d We s t a s p o s i t i v e a n d sustainable.
2004
was
a
very
successful
year
for
Ukraine's economy, which is reflected in the improve ment of main macroeconomic indicators.
At the end of the year 2004 Ukraine reached a record high GDP growth of 12%, even though natural growth slowed down due to the pre election uncertainties. The current account surplus demonstrated growth from 5.9 % of GDP in 2003 to 12% in 2004. Stable growth of foreign investment in Ukraine's econo my is solid evidence that an attractive investment cli mate is emerging. The international rating agency "Fitch" raised Ukrainian rating for long term liabilities in national and foreign currencies from "Đ’+" to "Đ’Đ’ " level, which increased investment attractiveness in the country even further. Foreign direct investments has experienced consider able escalation dating back to 2001. In response to the acceleration of the Ukrainian economic growth rate the 2001
volume
of
FDI
in
construction
&
real
estate
reached over half a billion US dollars, in 2002 nearly one billion, and in 2003
over a billion US dollars.
Over 110 countries have actively invested in Ukraine's economy over the past 6 years. The highest volume of FDI has come from the USA, the United Kingdom, Germany, the Netherlands, Russia, Cyprus, and Virgin Islands; these countries contributed approximately 60% of the total FDI in Ukraine. The government is now tak ing serious steps to improve the tax system, reform import export regulations, reform existing investment laws, and legalizing private ownership on land, this will make Ukraine's investment climate tive to investors.
even more attrac
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Investment Climate in Ukraine Ukraine now faces better prospects of transparency in the government sector, and rapid economic growth, after Viktor Yushchenko, the leader of so called "Orange Revolution", won the presidential election in 2004 2005.
A
ccording to the data of State Statistics Committee of Ukraine foreign direct investments
into construction and real estate market reached over US$ 1.3 billion for the period of January September 2004. The share of CIS countries contribution to this constituted
only 4% of that amount.
Experts forecast, that FDI in Ukraine's economy will grow exponentially after the appointment of the new democratic government. The European Union is also interested in closer economic cooperation with Ukraine taking into account the fact that present government has a pro western style of thinking, and a strong will for integration with the Euro Atlantic Alliance. Ukraine is expecting an improvement of rating from the leading world agencies (Moody`s, Standard & Poor`s, Fitch) after the coming parliamentary election in 2006. The city of Kiev, being the capital and also the gate way to Ukraine, benefits the most in terms of foreign investment, due to its infrastructure, rapid population growth and significantly higher availability of financial resources, than in other regions of Ukraine, and this trend is expected to continue in 2005 06.
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Residential and Commercial
Real Estate More than 1 million square meters of residential space and 250 thousands square meters of office space has been developed in Kyiv in the past one year. According to real estate experts, demand in this segment will continue to grow.
Commercial The commercial real estate market of Ukraine's capi tal city was viewed as one of the most attractive in 2004. The yield on investment in all segments of commercial real estate was higher than in London, B u d a p e s t , Wa r s a w o r M o s c o w . T h e a v e r a g e r e t u r n for these projects vary in between 15 to 25%, with payback periods of between 4 to 7 years. While the construction industry in Europe is experi encing a slowdown, the results from the Ukrainian development market seem to be quite the opposite and more promising.
The Kyiv City's
commercial
real estate market saw an increase in a number of new objects as well as Kyiv as the capital of
large scale projects in 2004.
Ukraine has the requirement and
potential to attract further investments to the tune of 2 to 3 billion US dollars per year, to satisf y its commercial and residential needs. The highest demand is for commercial real estate located downtown or in the neighborhoods adjacent to the city center.
Residential Kyiv has witnessed stable growth in residential real estate market over the last four years, with the largest increase experienced in 2004. The factors reflecting this increase in numbers are: an improved mortgage system, growth of the middle class, increased living standards, more local financing, and local currency stability.
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Results and
Prospects
The forecast, for the coming several years, indi cates that the real estate development market will be one of the most attractive segments, and this market gradually will attract attention of the international investor.
E
xpert opinion shows that Ukraine is capable of reaching the indicator of 80 million square meters
of residential premises before the year 2010. No doubt, that Ukrainian market offers lucrative prospects for western investors. Its capacity is primari ly evaluated by the general amount of return on invest ment and availability of spare capital within the coun try. Presently, payback period on invested capital, in Ukrainian real estate market is the shortest in Europe. For example if we were to consider a shopping center p r o j e c t , t h e s t a n d a r d p a y b a c k p e r i o d i n t h e We s t w o u l d be 7 to 15 years, in Ukraine this indicator would be between 4 to 7 years, also taking in account that a standard loan rate is approximately 12 to 15% per annum. High growth rates of, residential and commercial real estate, demand may continue for several years to come, due to stable influx of foreign companies estab lishing their offices in the Ukraine, and steady econom ical growth combined with a stable national currency. The new government is determined to change the image of Ukraine, both politically and economically. This determination should automatically reflect in future prospects for the investors.
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AncorReal Estate Subsidiary Company
Services: •
Real Estate Sales and Purchase
•
Buyer/Tenant Representation
•
Consulting
I
n 2004, Investore found the need to establish a subsidiary company Ancor Real Estate, that
specializes in the sale and purchase of real estate properties in the primary and secondary markets, o f c o m p l e t e d a n d n o n c o m pleted projects, as well as residential property overseas.
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Services:
Services Provided by Investore and its Subsidiary Ancor
Investore has given special attention to the final sale of real estate projects. Therefore, an inde pendent subsidiary company AncorReal Estate was established to implement this task.
• Development & Project Management; • Consulting; • Property Management; • Property Representation; • Full Range of Retail Services. The quality standards introduced within the company provide us with the opportunity to quickly respond to customers' needs, providing them with transparent, accurate and reliable information.
W
hether you need to bring selected resources into an existing property or project, or you're looking to diversify your interests through real estate in Ukraine, please feel free to contact us to discuss the many ways we can work together.
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