Being afraid of a possible price collapse in the real estate market, Kyiv builders made up their mind to downsize the construction volumes.

In particular, in Q1 2007, the 22 pct less housing has been commissioned than for the same period of 2006.

Realtors Association president Oleksandr Bondarenko is surprised with the quick and radical reaction of Kyiv construction companies. In their actions he sees a hidden plan to increase the demand on Kyiv real estate that has essentially fallen the last months.

According to Kyiv Zhitlo-Invest, the average price of new economy class housing in Kyiv is USD 1,701 per square meter. The company marks that by the end of 2006, the demand on the new economy class housing has fallen to zero. Though, that did not lead to the prices fall, as some analysts had forecasted.

The source: Rynok.biz