Ukrainian construction market has reached the bottom, we expect growth - expert

On December 3, during the IV National Conference of Steel Construction Market Participants, industry experts were looking for answers to the questions - where to play and how to win in a crisis period.

The largest event in the steel construction industry this year brought together a record number of more than 200 professionals working in the real estate and construction markets. The conference participants discussed the current economic situation and its impact on the construction industry, got acquainted with analytical reviews on the main segments of the steel construction market, shared successful business cases that allow to actively increase sales during the crisis, and also held a discussion on the entry of domestic companies into foreign markets. ...

According to the Head of JLL in Ukraine, Dmitry Sennichenko, “manufacturers of metal products for construction purposes should not expect great demand from the commercial real estate segment in Ukraine in the short term”. However, the Head of JLL noted that in connection with the adoption of the Law "On Amendments to Certain Legislative Acts of Ukraine regarding the elimination of regulatory barriers to the development of a network of industrial parks in Ukraine", in the near future, an increase in domestic demand from the segment of production facilities can be expected.

Answering the question when the crisis in the industry will end, Dmitry Sennichenko noted: “If we rely on expectations, then there is a feeling that we have reached the bottom. Small trades begin to take place. We do not have large international institutional investors who have already invested something, but they are already spending money on market research and are beginning to actively look at Ukraine. At the same time, we see that national investors are beginning to make deals, purchasing real estate for their own needs, which may indicate their assessment of the situation, that "it will not be cheaper anymore."

Speaking to the conference participants, the General Director of Ukrstalkonstruktsiya Vladimir Nosov said that the market of building metal structures in Ukraine in 2015 will decrease by 29%, while he noted that in 2016 the stabilization of the domestic market and the arrival of foreign investors, as well as an increase in the export of Ukrainian metal structures. “We are actively entering the markets of Eastern Europe, we consider in great detail the Central Asian countries and North Africa. We are looking for ways to increase production volumes by working for export in order to overcome the crisis phenomena that we have in the industry, ”summed up Vladimir Nosov.

During the last session of the conference, industry experts shared their experience of entering foreign markets, and the Executive Director of the Ukrainian Center for Steel Construction Sergey Shpak ras