Golden Square Meters: How Much Developers Earn on Apartments

How much does a high-rise building cost? According to government officials – about UAH 12 thousand ($446) per square meter. Is this true and what is real developer’s markup?

Ministry of Regional Development and Construction calculates the average cost of housing construction on a quarterly basis. According to the latest data, building a square meter of housing in Kyiv costs UAH 13.8 thousand ($514), in the regions – UAH 10-12.4 thousand ($372-461). Does this indicator reflect the realities of the market, and what margin is used by developers in the sales of housing to investors?

Local authorities provide the Ministry of Regional Development with data that become the basis for determining the structure of the cost of building residential houses. The price per square meter of the total area of the building serves as an indicator of indirect value.

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One Step to Catastrophe. Why Kyiv Schools and Kindergartens are Overcrowded and What Happens Next

The population of Kyiv and the number of multi-storey residential buildings are growing, which is not the case with schools and kindergartens.

Kyiv needs 57 more schools and 70 kindergartens. At least 10 schools and 16 kindergartens in the capital must be put into operation every year, but this does not happen.

In the first article, we described the scale of the overcrowding of schools and kindergartens and how the needs for their construction is ignored. We provided a particular example, when 8 thousand apartments appeared in the Osokorky district without three planned schools and three kindergartens.

But this is not a problem of one district – all Kyiv residents suffer due to the lack of kindergartens and schools.

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In Clutches Of Clans. How Construction Mafia Works (In Ukraine)

Source: EPravda

Originally Posted At Economic Pravda on July 24, 2018, author – Olena Medvedieva

The construction market has been captured by a system that lives not by the law, but by its own rules. The system consists of a clan of government officials who want to have their share from each construction site, and a clan of major developers who provide this share, but require their interests to be served.

There is an unfortunate sign in big Ukrainian cities: if a large housing development begins at some place, you are in for activists protesting with banners.

Alas, according to the local market rules, even those developers who are willing to offer a high-quality and inexpensive product to the consumer will be forced by other players to break the law and eventually wind up the price.

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