Late 2010—early 2011 witnessed strong recovery in Ukrainian real estate market: A class rent prices gained average of about 20% as economic recovery brought in demand for real estate. We expect the market to post similar price growth rate this year as investment inflow takes the market out of stagnation. Despite strong growth indicators most of investors are still overcautious about real estate sector as aftershocks of 48% fall of construction and 70% of projects put on halt in 2009 are still vivid in their investment policies. This creates broad opportunities for investments into the sector before it regains trust of major players. KDD Group will benefit from recovering market as materials prices remain low at rising real estate demand and new objects put into operation in 2011-2012 after receiving financing. It is now when KDD stocks are profitable to BUY for a target price of USD 1.03 and an upside of 233%.