Real Estate

Page 1

Presentation of Ukraine

PirGroup Ukraine

2013


Content 1. 2. 3. 4. 5. 6. 7. 8. 9.

General information Property Market in Ukraine! Health care Education in Ukraine Expats life in Ukraine –working What to see, where to go Ukrainian homes –what does it like Cost of Utilities, how does it work in Ukraine Cost of living in Kyiv


General information •

Covering 603,628 square kilometres, Ukraine is the largest contiguous country on the European continent, bordered by the Russian Federation to the east and northeast, Belarus to the northwest and Poland, Slovakia and Hungary to the west. Once one of the economic cornerstones of the Soviet Union, it has been independent since the dissolution of the Union in 1991, although the transition process was difficult and involved a profound eightyear-recession, later compounded by the global economic downturn.

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Ukraine is home to 46 million people, 77.8 percent of whom are ethnic Ukrainians, with a significant Russian minority (17 percent), and whilst Ukrainian is the official and dominant language, Russian is also widely spoken. There is a pronounced societal divide between the Russianspeaking Eastern half that politically and spiritually sides with Russia and the Ukrainian speaking Western half that is more European in its outlook and attitudes.


Property Market in Ukraine • • • •

Ukraine is defined as a ‘middle-income state’, and whilst not considered to be systemically unstable, has ongoing issues with underdeveloped infrastructure and transportation, corruption and bureaucracy. There are no legislative obstructions for expats to own real estate in Ukraine, aside from undeveloped or agricultural land, and the Land Code of 2002 permits foreigners to lease land for a maximum of 50 years subject to state registration. Landlords will usually ask for a two months deposit upon signing of a contract, but given the current market they are often flexible The economy is currently enjoying a period of stability and growth, having achieved a positive rate of around 3,5 percent in 2012.


Health Care •

Despite extensive attempts at reform, the Ukrainian birth rate continues to drop and the mortality rate is high and still climbing. In 2012 alone an official census reported a negative five percent population growth, and the life expectancy for a male is only 65 years.

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The Ukrainian National Health Service officially offers free health care for the whole population, but a critical lack of funding, overseas labor drain and low wages for doctors have meant that under-the-table payments have become the norm, and most doctors have to ask for some form of service fee.

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Expats using the national service will face staff with limited or no English, lengthy waiting lists for non-emergency treatment, medicine shortages and conspicuously lower cleanliness standards. If you are on any prescription medicines, take adequate supplies with you.


Education in Ukraine •

The level of education remains high, with 99.4 percent literacy rate. Almost three quarters of Ukrainian adults have either secondary or higher education, and there are a number of colleges and universities nationwide, most of which are in Kiev, Lviv and Kharkiv.

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Expats will find several options for international schooling for their kids, however they are mainly concentrated in Kiev and can be challenging to find in other cities of Ukraine. The major international Kiev schools include: - Pechersk School International, - Kiev International School and - British International School.


Expat Life in Ukraine – Working •

The business culture has some distinct attributes from that of the US or Western Europe. Expats have frequently observed that punctuality is not highly valued for appointments or scheduled meetings. Appointments are not set in stone, and cancellation or rescheduling at the last minute is not considered bad form, so frequent confirmation of any given appointment is recommended and may be an appreciated gesture as it gives the other party a chance to postpone.

Expats who have conducted business extensively in Ukraine have noted that external forces and ‘force majeure’ play a far bigger part in commercial activities than they do in the West. Ukraine does indeed have a problem with creaky bureaucracy and corrupt institutions.

Another aspect to doing business in Ukraine is the value of personal contacts and semi-social networking, that can sometimes seem to have more in common with Middle-Eastern practices than Western norms. Personal meetings are valued a great deal more than telephone or online conferences, and personal contacts within the government bodies are prized above all else.

Companies based in Ukraine may employ foreign nationals after obtaining a work permit, which will require a deposition that a Ukrainian national cannot do the work being offered.


What to see, Where to Go Ukraine possesses high potential for tourism and entertainment. Apart from numerous historical sites, including old castles, picturesque national parks, various architectural constructions, there is an entertainment infrastructure partially left from old Soviet times currently undergoing redevelopment, including zoos, parks, theaters, and newly built moviehouses, skating rings, stadiums. Crimean Resorts • Crimea has been a popular holiday and settlement destination for centuries, attracted Greek, Venetian, and Genoese settlers and leaving the place with a fantastic Mediterranean culture and architecture. Well worth dedicating some time to exploring the charming towns and resorts. Carpathian Mountains • Referred to as the ‘Green Pearl of Ukraine’, the mountain ranges are full of popular resorts and tourist centers. Nature parks, forests, lakes, streams and outdoor sports abound. Lviv • A charming medieval town with narrow marble paved streets, filled with eclectic architecture preserved in its original form. Lviv was once the capital of the mighty Galicia-Volyn Kingdom, a dynasty now long since disappeared. Odessa • The ‘Pearl of the Black Sea’ is the third largest city in Ukraine, and the biggest tourist and trade destination on the Black Sea. A mild climate, warm water and sunlit beaches prove to be a big draw all year around.


Ukrainian Homes The majority of expats looking for a ‘typically European’ urban environment tend to end up in the historical downtown encircling the old city centre.

Housing stock across Ukraine varies from one room apartments (a room including sleeping area, living area plus a small kitchen), through more traditional apartments with multiple, separate bedrooms, to larger houses. Houses and apartments for rent are available in two different states of furnishing:

Unfurnished The fittings will include fully fitted kitchen, bathroom and toilet, lightening and also carpets and curtains.

Furnished Completely furnished generally including furniture, appliances, cutlery, crockery, bed linen, etc. Rents tend to be 1.5 - 2X times the value of unfurnished.


WHAT DOES IT LOOK LIKE IN UKRAINE

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MIDDLE CLASS HOUSE Living room

Bedroom

Toilet

Kitchen Bathroom House


Cost of Homes, indication prices vary per district and per landlord Type of housing Studio apartment

Rental price (per month) € 500 - €1000

One-bedroom apartment

€ 700 - €1200

Two-bedroom apartment

€ 700 - €1500

Three-bedroom apartment

€ 1000 - €2500

Three-bedroom house with plot of land around

€ 2000 - €3500

Luxury house with swimming pool

€ 3000 - €5000


UNFURNISHED room g n i Liv

Bedroom

Kitchen

m Bathroo


FULLY FURNISHED Living room Bedroom

Kitchen

Bathroom


APARTMENT BUILDING Neighborhood

Home

Inside

Rental rates, indication only 1-2 bedroom 900 euro Fully furnished 1-2 bedroom 1500++ euro


ROW HOUSES Neighborhood Inside

Rental rates, indication only 3-bedroom 1000 euro Fully furnished 3-bed room 1500+ euro

Home


PRIVATE COTTAGES Neighborhood

Home

Inside

Rental rates, indication only 3-bedroom 2000 euro Fully furnished 3bedroom 3000++ euro


Utilities Utilities are not included in the rent in Ukraine. Sometimes through negotiations it can be included. There are separate gas, water and electricity meters almost in each home. They are located usually in a small closet behind the front door or inside. Some penalties and persecution can be applied against the consumer for non-payments of utilities and tampering with the meters results in. Use of Electricity is paid per monthly invoice The Monthly fee is based on the calculations of ZEK (Municipal Utilities Company) and depends on total area of home and number of persons registered in (in case no meters installed). Normally, utilities are not exceed EURO 150 for the apartment of total area up to 100 sq.m. Utilities are to be paid on a monthly basis.


Cost of Living in Kiev


COME AND ENJOY STAYING IN UKRAINE…….


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