1) Market prices have unquestionably and substantially moved up – sale supply has evaporated and, as a result, sales of properties has slowed as the market is finding a new, higher level.
2) Office market rebounds strongly following the end of the full quarantine. Unfortunately our tenant of Laboratorny 6 could not weather the full quarantine and recently vacated the premises. We retained their deposit as they vacated early. However, as soon as the quarantine ended we have been flooded with calls and have received several offers. We feel confident in the strength of the market & demand, we look to improve on the previous rent of $6,600/mos. and thus we are seeking an even $7,000/mos. implying a gross yield of 20.1%
3) 1Q21 had one very clear trend – in spite of the quarantine pause – there is a lot of excess capital that has been waiting to be deployed for the last year and any good news will bring sharp buying activity.
Real Estate Headlines
* Ukraine climbs to sixth place in the world for growth of property prices – Ukraine, Russia, and New Zealand are the countries where residential property prices have grown over the past four quarters at the highest rates. In terms of price growth, the Ukrainian capital took 11th place among 150 cities in the world.
* Sharp decline in new construction
* Forty Belarusian tech companies and 2,000 IT workers have moved to Ukraine
* Home mortgage loans, long a rarity in Ukraine, are up 23% 2020