Land prices for gated communities construction are growing

Consulting company SV Development (Kiev) pointed out a rise in the cost of land for gated communities construction in Kyiv region from the beginning of the year by 27% on the average because of prolongation of the moratorium on the sale of farmland (agricultural) land until 2008.

The maximal increase in the cost of land, by 55% and 34%, was registered in Obukhiv and Vyshhorod districts, where from the beginning of the year the prices rose to USD 7,191 and USD 3,843 for 100 square meters, respectively, the press release says.

In the Kyiv Sviatoshyn direction, the price of land over the period under review grew by 37% up to USD 7,603 for 100 square meters, in Brovary district by 32% to USD 2,970, in Odesa direction by 30% to USD 3,329, in Boryspil district by 10% to USD 4,307, and in Makariv district by 22% to USD 1,892.

"As seen from the results of the poll of market experts and land lot owners, the main reason for such price rising is prolongation of the moratorium, as well as the lack of new ways for legal suspension of its provisions.

SV Development has been functioning since 2005.

The company is working in the consulting services market.

Association of Realtors of Ukraine considers the prolongation of the moratorium on farmland sales until 2008 to be a reason for the appearance of inside activities in the land market.