The abolition of unit participation will in no way encourage developers to spend money on the development of children’s infrastructure. As well as the presence of this corrupt investment tax, which was administered by the city, did not lead to the appearance of schools and kindergartens. The cancellation simply removes the project cost burden of 4-10% of the construction cost and allows purposeful creation of the necessary infrastructure for the project. Because it is up to the developer to decide what to do with the released money, Andriy Ryzhykov, CEO and Managing Partner of DC Evolution, told the Business magazine.
Obviously, developers who develop large objects, so invest in infrastructure, because it makes their projects more attractive to the buyer, and also increases margin. But while the bulk of buyers is a decisive factor in price, not infrastructure, individual developers will continue to offer not complex projects but candles in the field or in the yard, but below market prices.
For example, in Kyiv the calculation of unit participation was very complicated – by area, by coefficient, depending on the number and type of square meters, and so on. If we talk about the direct rule of law on the need to pay 4% or 10% of the cost of the project, it could be shown any. Accordingly, the calculation process was terribly corrupt and opaque. But most importantly, the money paid into the budget simply dissolved and was spent on unknown purposes.
Article 40 of the Law on Regulation of Urban Planning clearly states that local governments are prohibited from requiring the construction contractor to provide any services, including the construction of facilities and the transfer of tangible or intangible assets (including residential and non-residential premises, including through their redemption), except for the share participation in the development of the infrastructure of the settlement. In other words, only infrastructure and networks, and not all, can be offset by law.
But because there are not enough kindergartens and schools, it is very common to sign a construction contract that allows you to build a conditional garden, and then the decision of the local authorities to take it on the balance sheet and reduce the share participation or completely exempt from its payment. But in Kyiv there is a situation where the builder, having built a kindergarten or school, can not transfer it to the balance of the city, because the city does not want to operate new infrastructure and categorically refuses to accept such facilities. This is how commercial kindergartens and commercial schools emerge, with the help of which the business somehow tries to repay the money invested.
Mainly kindergartens are built for 90-180 children. So, for a kindergarten for 90 children requires about 1300 square meters. m, the construction of which will cost $ 600/sq. m. m turnkey. It turns out about 200 thousand UAH for 1 child – a modern building with furniture, equipment and refurbishment. So building gardens is really expensive. Official statistics operate on a slightly smaller scale, but they are correlated. Here is the question of what and how to build.
For 1000 residents 38 places in the kindergarten are required. That is, in fact, one such garden provides for the needs of 2000 residents. And if the garden for 2000 people is worth almost one million dollars with land, then in terms of apartments – about $ 25 per square meter for sale. This load in some projects is a third or half of the margin.
The presence of a garden in the residential complex does not give a 100% guarantee that buyers will choose this LCD. Yes, it is really good to have a kindergarten and a school close to the house. Therefore, the rule in the new DBN that allows built-in gardens is very pleased. It is hoped that there will be built-in schools in the near future. It will allow to create children’s infrastructure exactly where it is needed, thus with minimal load on the developer. But on a global scale, in addition to schools and kindergartens, there are several dozen indicators and infrastructure that only in the complex provide comfort and security for home buyers.