UK & World's Top Property Investors To Get 16% ROI
Kyiv Property Market Overview & Tourism Growth
At the time of writing this overview in October 2019 and in the view of nearing Brexit, the London based real estate team would like to draw your attentiion to the following factors which open up a new window of investment opportunity for UK based investors in general and Londoners in particular, in a historically rich, yet the cheapest in Europe to live in, picturesque tourist city of Kiev (or Kyiv as Ukrainians prefer to say).
According to The Tourism and Promotions Office at the Kyiv City State Administration during the 1H 2019 the general volume of tourists in Kiev has reached 900 000 people. During this period, our daughter companies of daily rent lodging, have covered roughly 2% of all Kiev tourists. With more investments in property there we see a possibility to significantly increase this number.
Current situation with residential and office property market in Kyiv offers a once-in-a-lifetime unique investment opportunity which might become obsolete in a matter of 5-6 years. A huge potential of the country, which is yet to be revealed in the forthcoming few years, due to political and economic stability, positive changes and historically low prices on Kyiv property give investors an open window of opportunity to get a ~12%-16% ROI. This is a very attractive deal that currently exists in Kyiv property market on prime real estate assets (around 70% down since 2012 up until now) bottoming up and we have already taken advantage of this for a couple of years on a personal basis with many private investors. The example of such investments can be seen at TheatreApartHotel.com and KievApts.com
House prices have been stabilizing in Ukraine as well as hryvnia, Ukrainian currency, and economy has begun to recover - and though the trend is still down, the decline in house prices has recently been much more gradual. As of 1Q 2019 the average secondary market average apartment price per sq. m. is $1029.
In 3Q 2019 in the city center of Kiev, there have been detected cases of bidding on a private basis - property with the right market price was gone in the matter of 1-2 days.
Secondary market apartment prices in Kiev fell by 3.3% during the year to Q2 2017, to an average price of US$ 1,131 per square meter (sq. m.). Newly-built apartment prices fell by 3.3% y-o-y to an average of US$ 1,016 per sq. m., down 61% from their peak of US$ 2,638 per sq. m. of June 2008.
This followed a massive decline in house prices in 2014 and 2015, attributable to the Ukrainian hryvnia's loss of value due to a series of devaluations over the past two years due to the revolution. House prices are 68.8% below the September 2008 peak of US$3,627 per sq. m.
Kyiv inbound tourism is steadily growing reaching in 2018 the figure of 26% more if compared to the year 2017 and around 69% more if compared to the year 2016.
It is worth noting that against the conventional logic, the worse the situation is in the country the better it is for tourists as services sector and goods become much cheaper. Only during the last couple of years the number of cafes, restaurants and clubs and other entertainment facilities has grown significantly.
Brexit and Global Economy Crisis to Change Investments Flow
Wise investors are cashing out and re-invest in real estate
If you compare to United Kingdom and many other world leading countries, 8%-10% yield is a rare case one can expect, whereas situation is much worse for London investors with ROI topping up 5%-6%. Not to mention the fact that the opportunnity in Kiev exists with investments starting as low as £100 000 whereas in London or New York (for example) it is 3-4 times higher with yield being 2 times lower. In the light of nearing Brexit and the next Global Crisis the situation with economy in GB and the rest of the world (in New York where as well as in London prices for property have already dropped down 30%) will slow down and cause the further drop in prices of 30% - 40% along with property buying/selling activity.
The richest families of the world are in an active process of cashing out their money right now and abandoning the stocks through their Family Offices re-investing mostly into the quadrillion-dollar property market as the most prefferable one. It doesn't mean this is the only investment opportunnity on the world market map (Food Industry, Agricultural Industry, Banking Industry, IT Industry, Bitcoin, etc) but this is the most desirable and the easiest one to invest in, head-starting with investment as low as £100 000 if we talk about Kiev. And this is the market our team is highly professional in with special niche aiming apartments, trending now apart hotels and offcies (co-working spaces). Kiev property market lacks professional office spaces such as co-working spaces and offices for IT industry companies and IT outsource workers actively relocating to Kiev. At the moment office spaces have only 5% vacancy rate.
For British and other investors interested in most valuable (and historical) property in Kiev at all times even during crisis we offfer a special viewing tour after a KYC procedure which we will explain in details after our initial aquintance as we closely and exclusevily work with the representatives and owners of such properties.
We also have a special proposition for investoors with entry ticket of $200 000 to join our closed-end property recovery fund.
For more details send an email to London-based office.
London office representatives, please call them on the phones below.
London Office Contacts:
Wimbledon, SW20 0LJ
Mob. +44776 0496055