Reformatting and New Models
In the absence of an equity market, real estate has always been the most attractive investment for Ukrainians. It has demonstrated higher rates of investment return compared to that in other European States. The commercial property market has been dominated predominantly by local investors, while residential premises are increasingly popular among non-residents.
The global lockdown has definitely disrupted investment plans in the real estate sector. According to various estimates only around 30% of businesses continued working in their offices since the pandemic began. Many businesses followed the option of remote working till the end of the so-called adaptive quarantine. When planning future activities business leaders consider reducing existing office premises and taking up space sharing options. The office space industry may undergo dramatic changes. The popular model of co-working space is being considered more and more as a sufficient solution for both lessors and lessees.
This month’s cover story is focused on Gryhorii Tripulskyi from the Odesa-based De-Jure law firm, who states that as soon as bank mortgage lending opens up, residential property prices will rise quite sharply. And despite some reformatting of the market, it has huge reserves for growth.
Another interesting discussion in the current issue concerns control of foreign investments in particular areas of strategic importance for the economy and national security, as recently reflected in the draft law on a screening mechanism.
Happy reading, Olga Usenko