Andriy Vavrysh, CEO of SAGA Development, told LDaily about the introduction of the world’s only unique know-how – a mobile application SFERA which will successfully replace the traditional housing office; shared the prospects of the construction industry development in the capital city for the coming years. However, Andriy is convinced that environmentally sustainable concepts will become increasingly popular when green areas are preserved and expanded, and constructors involve natural materials, as well as multifunctional projects that will allow a person to live a full life and rest in a single place.
LDaily: The topic for MIPIM-2020 is called The Future Is Human. Please tell us about the way you select your team members.
A. Vavrysh: One of the values of SAGA Development is the synergy of talents. I invite professionals who don’t need to be explained how to do their work. On the contrary, they can teach us how to work, achieve goals, and make our company stronger. Things I appreciate in a team are personal involvement, the overall perception of the company’s mission, of its values and development strategy − it allows me to be on the same page about difficult things and trust each other. This trust is fundamental for our daily work routine.
LDaily: What kind of issues does the construction market face now? In your opinion, what reforms are necessary?
A. Vavrysh: The main issue is still the overregulation of the permit obtaining system. We are in a state of transitioning from the Soviet planned system of design and construction to the modern market one. There are many standards and procedures that are not harmonized, and sometimes they even contradict one another. Numerous institutions conflicting with one another provoke the use of manual regulation, which in turn leads to conflicts between developers and the community, as well as criminal cases and lawsuits. It will take about half a year to make the procedure of permitting documentation issue a clear and transparent public service, but this will solve 95% of documentation problems.
The second problem is the format of relations between developers, municipality and community. In recent decades, instead of cooperating with the aim of creating a modern comfortable city, we have been watching a confrontation, a one-goal game. The new law on the capital, if adopted, gives us hope that this situation will disappear and it will be possible to involve the community in the decision-making process for the further development of the city and forming a new format for relations between stakeholders. This, in turn, will allow us to work together to create projects of a completely different quality.
LDaily: Is the potential house buyers’ demand for innovative and eco-friendly solutions increasing? What can your company offer in this segment?
A. Vavrysh: Yes, a demand for such solutions from our buyers really exists. There are basic things: safety, comfort, simplicity and quality of services. We ensure security with our access control systems to the house, apartment, and floors. We were the first in the market who created the SFERA mobile application with the aim of replacing the traditional housing office thanks to the ability to communicate with the management company through the mobile application or pay utility bills in one click. The application allows you to control the guest access to your home from a smartphone, pay for utilities anytime, and even a child can cope with it. With SFERA you can order management company services and give feedback on the quality of their performance − we use a ticking system for this. We studied the situation in other countries and it turned out that there were no analogs of SFERA in the world yet. Meanwhile, we are constantly working to expand the functionality of the application and to spread it in a region and city.
Our customers are active and conscious Ukrainians increasingly becoming more interested in environmental solutions each year. There is a growing demand for separate garbage collection and installation of electric truck charging stations − this is what we expect from most of our facilities.
We are now looking for ways of improving the environmental situation with our new flagship project called New Podil. In addition to using only natural materials there, we are working to improve air and water condition in the harbor near the area: the public pedestrian promenade in the project involves interaction with water.
Another project called O2 Residence is located in the woods near the lake. We save the existing trees as can be and create our own eco-farm where residents can grow organic vegetables and fruits on their own or with the help of an agronomist.
The new concepts involve the possibility of creating green operational roofs and winter gardens even at the design stage.
LDaily: What is your forecast for the construction market of 2020?
A. Vavrysh: The introduction of bank tools in terms of affordable mortgages at 10-12% per annum in the market will allow to make residential real estate accessible to broader layers of the population and to meet a pent-up demand. There is a steady demand for coworking, residential and office real estate from IT companies and their employees. Given the continuing growth of the industry, the demand will also increase. This will improve the financing of development projects, promote growth in supply and competition.
The office real estate market will be actively developing. There is already lack of office space, especially large lots, and by 2020 this situation will only get worse. The number of build-to-suite projects and business centers purchased or leased before commissioning will increase.
There is a growing demand for multifunctional projects that allow you to live, work, shop and rest in a single place. In order for such projects to function properly and be sustainable, each function they provide must be diverse. Customers are interested in infrastructure already at the start of the project, and this encourages developers to create better and more seamless concepts.
Finally, I hope legislative shifts amid economic growth will enable to attract significant foreign investment to the construction industry this year. We already see that foreign investors are interested in the market, and this is likely to be transformed into real deals. In order to accelerate this process, investor protection mechanisms should be implemented, in particular escrow accounts.
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