Ukraine has predicted the fall of housing prices

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www.vsyako.netPhoto: RIA Novosti

Deputies of the Verkhovna Rada decided to cancel the unit payment for infrastructure development, which was charged with the Ukrainian developers in previous years. The bill has already passed in the first reading. The real estate market participants believe that the abolition of tax will reduce housing prices in the country, writes the business newspaper UBR.ua.

If the document will be finally adopted in Parliament and signed by the President, developers no longer have to pay to the municipal budgets the percentage of the estimated cost of the project. Currently, this fee amounts to 4 per cent, if we talk about the construction of residential houses, and 10 percent in the case of commercial properties.

According to the authors of the bill, the mechanism of the contribution obsolete, in addition, he indulges in corruption: the money should be spent on the development of social and transport infrastructure, in reality ends up in the pockets of local officials.

Experts of the Ukrainian market of real estate believe that the result of the abolition of the tax may be to reduce housing costs for the end user: 0.1-4 percent depending on the region. The specialists indicate that the adoption of the law will only affect prices in new residential complexes, which are still designed.

“Remain questions for the transparent allocation of land for construction, obtaining building permits and, oddly enough, the process of input of object in operation. In addition, to date, there is no guarantee that the abolition of the contribution is not fraught with any secret questions,” said UBR.ua a representative of one of Ukrainian developers Alexander Panfilov.

According to the portal of real estate DOM.RIA, in September 2019, the average cost per square meter of housing in Kyiv amounts to 29.3 thousand UAH (1.2 thousand dollars, or 76.6 thousand).

Video, photo All from Russia.

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