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Already in the beginning of 2020 in Ukraine, housing prices will be raised by 10%. The price increase in the first place would be LCD-class comfort, with modern technologies and sophisticated infrastructure systems. As for the “economy class”, here, everything is much easier, prices will rise only a couple of percent, the cost will depend on the installation work, materials and repair.
When the country is in a state of instability, the demand for housing drops significantly. Given the fact that in 2019 the country has experienced parliamentary and presidential elections, it is not surprising that demand has fallen. No one wants to invest during a time of political and economic instability, however, at the end of the year the demand has risen, but the exact data yet.
Elena Chepalova, which is the head of marketing of the Building company “Vertical” has explained the situation as follows - “fluctuations in demand was associated primarily with long-term electoral processes, and strengthening of the hryvnia. Now in the Western cities the situation is quite stable until the end of the year we expect a slight recovery buyers by 5-7%, including Ivano-Frankivsk, Lviv and Uzhgorod”.
Also, the price increase has affected the cost of advertising. Developers and capitalists say that over the last couple of years, marketing costs have increased several times, estimated spending on advertising is about 4-6% of the cost per square meter. Spending on advertising is a necessary need. The market is growing and developers-competitors getting bigger, there begins a struggle for potential customers.
Technical Director NOVBUD Vyacheslav Bevza explained “in world practice the share of marketing costs in the development of the housing can reach 8-10%. However, due to the low margins in the massmarket segment, which is about 80% of the Ukrainian market of new buildings, a further increase in marketing costs developers unlikely. And any increase will significantly affect the cost of sale of housing.”
From 2020 to 2025 in terms of progress most likely will be digital technologies that are now an indispensable marketing tool. Real estate developers are increasingly used digital tools in the promotion of their LCD, but each will have their own strategies and tactics, how to "win" in the digital field, what are the niches and the tools to use.