Psychologists say, humans have an extremely poorly developed prognostic function and an extremely well retrospective one. Thus, any predictions about investing in our country, not backed by tests, are very unproductive. However, one can notice that investing is decreasing in Ukraine because of “elections season”.
There are two types of foreign investors: for some it does not matter which political party stays in power, and how difficult the external security situation in Ukraine is, but for others issues of political risks are the priority areas, since in our country business is very dependent on the public authorities.
At the same time, the permanent warfare, in theory, should have already filtered out the latter. Since 2014 there has been a collapse in the field of foreign investment, and only now the dynamics became positive. This development is caused by the EU integration of Ukraine, stabilization of situation in the East, and even Ukrainian reforms. The screening of investors who are afraid of risky geopolitical moments in Ukraine did happen. The situation is still hardly be called a stable one, that’s why now any global upheaval will have a negative impact on investment climate of Ukraine.
From our experience (over 10 years working with foreigners, projects costing between a few tens of thousands dollars and $ 3-4 million on average), investors are interested in:
- ROI (attractiveness and payback),
- investment security (i.e. riskiness and losses),
- political situation,
- development of the country as a whole and in a specific region in particular,
- the legal status of an investment object.
Unfortunately, landlords rarely prepare their own objects for sale (conduct audit, structuring, take financial advise regarding calculations), so the investor has to spend time collecting data, which reduces the attractiveness of an object.
Leave A Comment