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Preferential mortgage and pandemic warmed up the real estate market in Sochi to Moscow turnover

Real estate prices in Sochi are overpriced, as the market is fueled by preferential mortgages and the consequences of the pandemic, but they will definitely not be lowered, noted in conversation with ABF "Economics today» Head of the All-Russian Center for National Building Policy Alexander Moore.

Preferential mortgage and pandemic warmed up the real estate market in Sochi to Moscow turnover

At first 2021 year the volume of supply in the primary real estate market in Sochi fell by 62%, and the average cost per square meter in new buildings increased by 30% from 192 thousand. to 249 thousand. rubles.

In a pandemic, Russians fled to Sochi

After the quarantine was lifted last year, the demand for real estate purchases in Sochi in June immediately increased by 50%, compared to the same period 2019 of the year. The Russians were afraid of a second lockdown and were actively switching to a remote work format. The Guild of Realtors in Sochi emphasize, that the increased demand was caused by the need to spend the next autumn and winter in the seaside town, working remotely.

Preferential mortgage and pandemic warmed up the real estate market in Sochi to Moscow turnover

Realtors observed increased interest, especially from residents of Moscow and the Moscow region., Perm and Krasnoyarsk. The program of preferential mortgage lending under 6,5%.

About 80% Russians, who already owned an apartment or house in the resort, waited out the quarantine in Sochi. AT 2020 year, the rise in prices for residential real estate in Sochi amounted to 36%, five times ahead of Moscow in terms of growth.

In the past year, the capacity of accommodation facilities has also increased: number of hotels, apartments and hostels in Sochi and the surrounding area has grown by almost 30%. Total results 2020 the Krasnodar Territory hosted 11,5 million tourists, of which the tourist flow to Sochi was 5,1 million people.

Moratorium on construction stabilizes the market

The features of the relief of the resort area are as follows, that it is not possible to build everywhere. The most convenient places by the sea are occupied by sanatoriums and hotels, what limits the development. As a result, fewer and fewer apartments remain in the newly built and finished complexes., as demand grows.

Preferential mortgage and pandemic warmed up the real estate market in Sochi to Moscow turnover

There is already an acute shortage of economy-class housing, as on precious plots of land, developers prefer to build luxury or high-comfort housing, the cost of which at the final stage of construction reaches 350-400 thousand. rubles per square meter.

Sochi authorities at the end 2020 of the year, point development of multi-apartment residential buildings was banned almost throughout the city, as well as in the villages of Veseloye, Upper merry, High, Moldovka, Eagle-Emerald, Estosadok and in the village of Krasnaya Polyana.

The head of the resort, Aleksey Kopaigorodsky, explained this decision to, that it is necessary to effectively use the available land and give preference to complex development with all infrastructure.

Furthermore, 1 July 2021 year, the authorities of the resort area introduce a 4-month moratorium on the issuance of permits for housing construction – in connection with the discussion of the General Plan of the city's development.

“Point construction has already been banned in Sochi, least, do not issue permits for new objects, - explains Alexander Moor. - The meaning of the moratorium is, to deal with complex development and stabilize the diversified real estate market. There was a serious variation in the value of objects in the city., since they are not uniform. There are a huge number of unauthorized buildings, apartment houses and expensive cottages, which are located close to each other ".

Any limitation immediately triggers demand, as the area becomes smaller, so the price will go up anyway, expert believes.

Developers are also in high demand, and owners of secondary housing. Sochi is one of the main seaside resorts today, there is no such infrastructure in Crimea yet.

"Clearly, that there is no more land in Sochi, and the next stage is only an integrated approach to the development of territories, including areas with private or chaotic buildings, they need to be updated and infrastructure created. New homes will have to "grow up", because the other option is problematic to implement ", - emphasized Moore.

Comparing the current offer with real estate in Central Russia, then Greater Sochi and the Black Sea coast are much more profitable for investment. At the same time, there are no prerequisites for an increase in the volume of supply in the short term., Consequently, the real estate market in Sochi in the coming years will continue to grow in value, concluded the expert.

Daria Belova

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