The fact is that many homeowners have bought new apartments (that have not been rented before) to the real estate market. The "speculative" apartments are rented, the ones that were bought to resell at a higher price. There are many cases when big and expensive apartments are rented. They were purchased on credit – to have at least some additional revenue.
By end of the summer the real estate agents of Nikolaev (Nikolaev Apartments) await a traditional autumn growth of rental rates. But for now all is quiet. Since the beginning of 2009 the real estate market is quiet. The income of the population fell, the unemployment increased and all of it asserted in reduced ability to rent an apartment. But the number of real estate agents increased significantly. And not only because of declaring demand.
The tenants, of course, like the changes – the prices have reduced and the homeowners have become more accommodating. In the beginning of the year the rental rates have been transferred to hrivnyas, and closer to the summer the hrivnya prices have started to fall down.
Despite the recession, some landlords still tried to raise rates, particularly in Nikolayev and Odessa. The reason – a short-term stabilization of the national currency and increase in utility payments. If the price of long-term rent remains stable, the short-term rent in 2009 is surprisingly unstable – especially in the resort regions of Ukraine. Only instead of the traditional increase in price by more than 50%, the prices only rise by 10-15%. The reason is that the number of holidaymakers significantly decreased.
In the Ukrainian cities that are less often visited by tourists, the prices have changed only a little. For example, in Nikolaev (a city located 150 km from Odessa) the prices for Nikolaev apartments have remained the same but have become more tied to the dollar, the payment is usually made in US dollars.
There are few new objects on the market, there are fewer clients, but the prices for apartments are not reduced. Appropriately this is the feature of a more passive and provincial market of Ukrainian cities. It is obvious that in Ukraine there's an economic and financial crisis, including the crisis of the real estate market. The devaluation of the Ukrainian hryvnia and the strengthening of the dollar consolidated the apartment rental prices in dollars. For tourists visiting the country this is a big plus, because if you compare the prices in dollars in 2008 and 2009, the price declined almost by 50%. But for the Ukrainians prices have not fallen, and even increased. Will it promote the inflow of tourists into the Ukraine – it is still an open question. Let's wait for the elections in January 2010.