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Friday, March 2, 2007

50% of total land deals in Kiev region are the speculations

And their share is rising rapidly. Somebody talks that this figure will grow up to 100 % this year. According to Yaroslav Lomakin , such a rush by speculators desire to concentrate in their hands most of the land before the end of the moratorium. Perhaps, the moratorium was prolonged with given reason.

As you know
on December 19, 2006, Verkhovna Rada passed a bill that extended the ban on the sale of agricultural land until January 1, 2008 Mr. Lomakin gave, as an example, the concentration of speculative capital near Obukhov highway : “I know sites that was resold five times, and there was still no construction.

Experts believe that the increase in speculative capital in Kiev region contributes to increases in the price of land and the the moratorium cancelling does not down them because speculators will control the offer.

oday in land deals involved many private persons and companies. Many tycoons do not shy to make that business. They are traditional operate trough affiliated structures so no evidence is possible to get.

Vladimir Stepenko, CEO of SV Development, says the main landlords are large construction companies. Such organizations have a strong lobby in the administration and authorities. Among the biggest land owners experts note Andrei Ivanov and his Kiev Investment Group (KIG), Deputy Prime Minister for Humanitarian Affairs Dmitry Tabachnik, his brother Michael and company HCM Group. And deputy HCM Group, Radomir Tchurkan said that they really looking a big land plots for their logistic projects.

Today the average price in the Kiev suburbia is USD 3 600 for 100 sq.m. which is 25 times higher than the price of land in the country as all. The maximum price increasing in last year was in Borispil destination, where land price increased up to 89%. Second largest growth is in Kievo-Svatosinski district (Zhitomir destination) with 62% growth.