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HomeLatest NewsApartments in Crimea: forecast - "sell" until prices drop further

Apartments in Crimea: forecast – “sell” until prices drop further

Date: February 23, 2024 Time: 23:40:07

The Crimean real estate market until recently looked like a rocket. The accession of the peninsula to Russia, the opening of the Crimean bridge, the construction of new roads – each of these events raised housing prices by at least 30-40% per year. And it happened, and it doubled!

But for a year now, the real estate market on the peninsula has been in a fever. This can be understood: the operation of the airport is limited, tourists are afraid to relax, and investors are afraid to buy real estate in the immediate vicinity of the NWO zone. In addition, there are assets, for example, apartments, from which experts advise simply … get rid of!

DEMAND DECREASED

In fairness, let’s say that the solution of the housing problem has faded into the background practically in all of Russia. We remember how mortgage rates skyrocketed last spring, and in the second half of the year the number of people willing to sell investment property increased. Even now, the vast majority of Russians have a headache that is clearly not about buying new “square meters”. Industry experts know this all too well. The March all-Russian survey of the Domklik online resource showed that in the near future 60% of realtors expect a decrease in prices for apartments and houses in large cities.

There are even more factors influencing demand in Crimea. It’s no secret that investors from the “mainland” played a significant role in the real estate market on the peninsula. They have not appeared for more than a year. The demand for housing has fallen. Thus, according to last year’s results, new construction sales decreased by 60%.

The situation was partially supported by state certificates, for which residents who left Kherson bought apartments in the Crimea. But now this tool is practically exhausted. The developers say they are now targeting the indigenous population.

The problem, however, is that the people of Crimea are mostly poor. Last year, the average salary was about 40 thousand rubles. Even with a mortgage, expensive housing will not work. Preference is given to studios and one-bedroom apartments.

Business-class housing is cautiously getting more expensive. Well, as it “gets more expensive”, officially. But in reality, developers often get rid of apartments at a decent discount.

NO DWELLINGS AND “COMMON” ESTIMATES

A particularly serious situation has developed in the apartment market. Remember that apartments are not considered apartments from the point of view of the legislation; this is a type of non-residential property. You can register with them (“register”) at best temporarily. For apartments, there are higher tariff rates – they are calculated as for commercial premises, there are no utility benefits or subsidies. In the state support rules, mortgage conditions or requirements for beneficiaries, is there the phrase “residential premises”? Apartment buyers will not be able to use them. That is why Kherson residents could not buy such real estate for certificates.

Why do we need apartments? Some buyers live in themselves, others rent to vacationers, but more often they combine life with profit. And if initially apartments often cost less than apartments, then the general “communal” and other costs will be higher than in an ordinary apartment building.

In the first quarter of 2023, the average price of contracts for the sale of non-residential premises located on the southern coast of Crimea amounted to RUB 136,642.47. per square meter. But this is a “dry waste”. The apartment market is heavily influenced by the dishonesty of real estate sellers. In known resources, advertisements for the sale of real estate are placed with prices two or three times higher than the actual market price. Of course, there is no goal of selling real estate in this case. However, artificially high priced listings are often used as analogues when assessing the market value of real estate, which is unacceptable as it does not reflect the actual situation on the real estate market.

Experts note that there are no universal price-quality offers in the region, the saturation of complexes with a recreational component (children’s and sports parks, kindergartens, schools) may also be absent, thus turning the apartment complex into a banal point. object with residential cells in the distance of the sea.

It turns out that apartments are a risky investment. Investing savings in apartments is a completely separate business, small and dependent on the tourist flow, which, with the arrival of the NWO and the transport restrictions, has decreased and caused a drop in the cost of commercial housing. As stockbrokers say in these cases, “a weak asset.” And such investments are generally disposed of without waiting for a further fall in prices.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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