Costs have escalated, deals have diminished.
Hey there! Let's chat about the real estate market situation in Kuban cities, shall we?
First off,talking about primary markets, housing prices have certainly gone up, especially in Sochi, where a square meter now costs an average of 465,800 rubles — a 4.3% increase from last year. In Novorossiysk, new builds are pricier too, at 225,200 rubles per square meter, up by 3.1%. However, Krasnodar seems to buck the trend, with primary housing becoming cheaper (167,000 rubles per square meter) despite a 24% drop in supply.
As for secondary real estate, prices have been steadily climbing over the year. Notable examples include Gelendzhik, which has ballooned by 10.1% to 256,000 rubles per square meter, and Novorossiysk, up by 9.6% to 161,000 rubles per square meter. Even Krasnodar, a city where primary housing has become cheaper,secondary housing has gone up by 5.9% to 123,800 rubles per square meter.
Sochi, though, remains an exception with secondary housing reaching 323,600 rubles per square meter, showing a mere 2% increase but with a substantial 48% drop in supply.
So what's causing this real estate boom? Well, demand and tourism are key factors, with increased tourist activity attributing to the sustained interest in Kuban cities, particularly Sochi, following the 2014 Winter Olympics. Plus, infrastructure improvements and new developments make these cities more desirable to both residents and investors.
Economic factors, such as broader economic conditions, sanctions, and local policies, also play a role. For instance, supply constraints might be caused by the pace of construction and the availability of materials, as well as the departures of some foreign companies and the impact on the construction materials market.
Now, what does this mean for buyers? New constructions might get more expensive due to higher construction costs and increased demand, with developers perhaps focusing on higher-end properties for profit. For secondary housing, existing properties can expect price increases as well, making it harder for buyers to find affordable options due to the overall demand and limited supply of new housing.
All in all, the strong demand, limited supply, and economic factors contribute to the rise in real estate prices in the Kuban region. Keep that in mind if you're planning on buying a place there!
- In the Kuban region, investors might find attractive opportunities in the real estate market, as housing prices, both primary and secondary, continue to rise, particularly in Sochi and Gelendzhik.
- The financial aspect of owning a home in Kuban cities, such as Krasnodar, Novorossiysk, and Sochi, can be challenging due to the increasing demand and limited supply of properties, leading to higher prices and less affordable options for buyers.
