Dynamics of the Crimean Real Estate Market Development In 2010, the Crimean real estate market showed clear signs of growth. In the winter and spring months of 2010, there was a fairly dynamic rise in prices, as a result of which the Crimean real estate rose in price by 10%. By May, the rise in prices had stopped, and in July there was a rather noticeable 5% decline. However, in the second half of the year the market remained stable, which ensured the preservation of the overall annual price growth of 5%. Characterizing the dynamics of supply and demand, it can be stated that the number of real estate offered for sale was gradually growing, and the market began to expand. The demand remained, although not high, but stable. The number of transactions, in comparison with the “crisis” 2009, has increased. The crisis period of the Crimean real estate market passed with minimal losses. Due to the decreased demand and difficulties with financing construction, most of the Crimean developers have serious problems with meeting the initially planned terms of commissioning of facilities. Planned for 2008-2009. the deadlines for the delivery of most new buildings have shifted by an average of 1-3 years. Today the market is stable and has become more customer-oriented. To overcome the crisis period, developers have developed various schemes for attracting buyers: - Provision of discounts. For example, the Unity company held in 2009 special promotions for two of its projects: White House and Villa Roses, providing customers with the opportunity to purchase apartments and townhouses with a 40-50% discount. As a result, the developer managed to sell 100% of the space in the White House residential complex and 90% in the Villa Roses complex; - Providing profitable installments (the down payment, for example, was reduced to an average of 30% of the cost of the apartment). Specificity of the South Coast Real Estate Market The resort and recreational status of the peninsula has largely influenced the formation of the region's residential real estate market. This is especially evident in the South Coast. So the apartments located here are considered the fastest growing type of real estate of the peninsula and, according to a number of developers, pay off in a fairly short period of time, when compared, for example, with the hotel industry. Most of the housing under construction in the South Coast are projects of the Business, Premium and De luxe class. This is justified by two main factors: the specifics of demand (low purchasing activity of local residents) and the high cost of land. The demands of buyers of luxury resort real estate in the South Coast have increased. When choosing an apartment, such aspects as the readiness of the object, the reputation of the developer (investor), the availability of all permits for construction documentation, the obligatory indication of the dates for the commissioning of the object come to the fore. The geography of construction of high-quality housing on the South Coast of Crimea is expanding towards small nearby towns (Alupka, Mishor, Gurzuf, Simeiz), since there are practically no free building sites in Yalta itself. The number of new projects on the market has decreased. As of the IV quarter of 2010, there are only 3 new large projects (announced back in 2009). For the current state of the primary market, when more than 60% of objects are under construction, there are enough offers on the primary market. But in the medium term of 2-3 years, the absence of new projects can lead to a shortage of supply, which will stimulate price increases. The South Coast of Crimea, and first of all Yalta, is also the leading region in terms of housing prices in Crimea. The average price of quality housing in the Yalta region is 4000-4500 dollars per 1 sq. M. There are also more expensive offers - $ 7,000 per square meter and more, it all depends on the location of the object, its quality and readiness. Trends in the value of real estate Today we can already talk about the beginning of a smooth recovery of prices in the primary market. Since the end of 2008, real estate prices on the South Coast of Crimea began to decline. This trend continued in 2009. In autumn 2009, the fall in prices stopped. Many market participants started talking about reaching the “price bottom”. Since the fall of 2009, the demand for luxury resort real estate began to gradually revive, and the first sales began. Factors affecting the cost of the price: - location in a secluded area - quality of construction - author's architecture - closed social infrastructure - general readiness of the object for operation Market development prospects The current 2010 can be described as a “buyer's market”. There was no demand for projects at an early stage. During 2011, experts predict the beginning of price increases in the market. With the economic recovery, effective demand will increase, “deferred” demand will appear, and investment buyers will begin to return. In addition, the number of high-quality (liquid) projects with a high degree of readiness will decrease. By 2012, an acute shortage of high-quality resort real estate in the South Coast can be expected, due to the lack of new announced projects, which will lead to an active rise in prices. The situation will be characterized by a transition from a “buyer's market” to a “seller’s market”.
The material was prepared specially for the HomesOverseas.ru portal by the company
