Soaring installment plans in the property market: A new trend for developers and buyers alike
Declinein Half of Mortgage Deals Involving Resort Property Transactions
In the Kuban region, there's been a noticeable drop in mortgage deals for resort real estate, as reported by TASS through Tamara Kolomiitseva, the commercial director of AVA. But fear not, my buddies! If you're on the hunt for a property, there's a silver lining - the number of installment deals from developers has skyrocketed!
Some experts attribute this shift to a rise in clients who purchase properties for investment purposes, particularly in Sochi. It's estimated that a mind-blowing 80% of primary market agreements in resort cities are closed by buyers, mainly hailing from Moscow, St. Petersburg, and Siberia. In Krasnodar, the figure is a bit lower, hovering around 30-40%, with a decrease in buyers from other cities and a surging interest in resort areas.
Interestingly, we've previously reported a downward trend in studio rentals in Krasnodar, with the average price being a relatively affordable 22,000 rubles, a decrease of 3.5%.
Now, let's dive into why this installment plan craze might be happening. Developers could be capitalizing on this flexible model as the market heats up, giving buyers the chance to purchase homes with payment terms that fit their wallets. In turbulent economic conditions, it could be a lifesaver for both developers and buyers.
Economic instability, rising interest rates, or changes in regulations could be playing a part, making mortgage deals less alluring or more expensive, nudging buyers and developers towards installment plans. Developers might be using installment plans to stimulate sales and provide accessible entry points into the market for resort properties, where buyers may be more sensitive to upfront costs.
Intriguingly, buyers might be drawn to installment plans due to the perception that they come with lower upfront costs or manageable monthly payments compared to traditional mortgage structures. This tendency towards installment arrangements could represent a broader shift in the real estate market, as buyers adapt to new financial realities.
However, a detailed analysis of the situation in Kuban isn't currently available. But fear not, my friends! These factors can offer insights into the general trends shaping the real estate market. Keep an eye on those installment plans, and you might just find your dream home! 🏡💰😜
(Economy, VKontakte, Odnoklassniki, Telegram, Viber, WhatsApp)
In the Kuban region, developers are offering an increasing number of installment plans for residential properties due to a rise in investment-focused buyers, particularly in Sochi. This flexible payment model could be a lifesaver for both developers and buyers during economic instability, rising interest rates, or changes in regulations, as it presents an accessible entry point into the market for resort properties.
