Perfect Group CEO Oleksiy Koval compares the Ukrainian market with Western financial instruments and highlights radical shifts in the investment structure:
“Ukraine’s investment and construction model is fundamentally different from the Western one, where developers work with borrowed money. Over there, developers have various options — go to a bank and borrow at 5%, or turn to non-bank institutions, insurance companies, or pension funds. Before 2022, Ukrainian developers operated with their own funds and, to a large extent, money from the general public. That was an understandable model. Now the proportion has shifted significantly. While before 2022, 10% of the resources belonged to the developer and 90% came from the public, today you have to invest up to 60% of your own money into a project before you can even attract buyers’ money.”
In the higher-end business-class real estate segment, the situation follows a different scenario, as construction there is sustained by targeted high-value transactions. According to the company head, there might be almost no sales throughout a month, but a single deal purchasing two penthouses of 300 sq. m each provides enough financing to keep construction moving forward.
Regarding the future transformation of the sector and the necessity of shifting to transparent European operating standards, the development executive voices a principled stance:
“Currently, there isn’t a developer who would say they aren’t ready to operate ‘100% above board’. We have long been ready and are working transparently. Give us balanced regulation, transparent rules of the game, access to loans — and we are ready to implement all assigned tasks, of any scale and complexity.”
Read the full text in the Interfax-Ukraine article.
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