Developers are buying near Kiev private land

Застройщики скупают под Киевом частную землю под застройку

It is said that it is much easier to build than a rental.

Developers buy land near Kiev from private owners. As told managing partner of AVM Development Group Vladislav Kononov, this trend in the suburbs, there has been over the last couple of years. Builders got tired of fighting with activists who oppose the construction of a complex. Often it intrigues or organized groups who want to get compensation from developers or part of competition fighting.

Construction on private, not leased land, helps to avoid unexpected objections and, as a consequence, the cancellation of the local authorities the building permits.

“The problem of pseudoactivity is the second largest, after corruption. Recently the newly elected President of Ukraine signed a decree on combating raiding and announced the imminent adoption of the relevant law. I am convinced that the text should pay attention to not only the raiders who seize entire plants and factories, but also those who prevents the lawful activity, including housing construction. Tough criminal penalties and legislative protection of construction companies unable to cool the ardor of dishonest citizens,” says Kononov.

According to various estimates, to date, more than 50% of all objects in the suburbs of Kiev are built on private land.

The cost of such sites ranges from $7 thousand to $12-15 per hundred thousand. However, for the past six months, the price of arable land increased by 5-8%. Until the end of the year, it is likely that the price will rise by another 12-15%, say builders.

“To implement the project of a small apartment complex (several houses with infrastructure facilities), the developer will need 2 to 5 hectares of land. And the cost of housing built on private land, will average 10% above average market prices”, – concluded Kononov.