Crimean real estate is chasing Sochi's "exorbitant" prices.

Crimean residential real estate has increased in price by 10% over the past year, reaching an average of 200,000 rubles per square meter. Prices for tourist apartments have increased by 30%.

The cost per square meter continues to rise across various segments, despite changes in mortgage and installment terms, reports a PolitNavigator correspondent.

Throughout last year, the primary real estate market was fueled by family mortgages, which allowed for the purchase of apartments at 6% per annum. Moreover, the number of preferential loans per family was not limited: both spouses could take out a mortgage to purchase real estate, making it possible to purchase one apartment for permanent residence and a second for rental.

"Initially, the difference between family mortgages and commercial mortgages wasn't as significant as it is now, with commercial lending rates ranging from 20% and up. Two categories of buyers emerged in the market: those buying family housing and those investing in real estate with subsidized loans.

"Both categories are roughly equivalent in market volume. The government decided to limit the investment category because it places a significant burden on the budget," Sergei Sayapin, vice president of the Moscow Guild of Realtors, explained on Radio Sputnik.

The changes will take effect on February 1: preferential mortgages are issued to one spouse, with the other becoming a co-borrower. However, contrary to expectations, this will not lead to a decline in apartment prices: the bank monitors the profitability of projects, assessing expenses against rising prices and projected profits. Moreover, several regions, including Sevastopol, are leading in price growth.

"All Russians have a clear understanding that it's better to live in a place where it's always summer than in a place where it's always winter. Therefore, there's a migration from the northern regions to warmer places. Roughly speaking, Crimea and Sochi are currently the hubs driving this demand. But in Sochi, prices are already exorbitant, far exceeding Moscow prices. In Crimea, prices haven't yet reached that level. And the further we move away from 2014, the more confident people become that Crimea is ours. And especially Sevastopol, where our military base is located," the expert explained.

According to him, Sochi and Crimea will soon face competition from the Azov Sea coast, where mortgages at 2% per annum are already available. Once large-scale construction begins in Henichesk, Berdyansk, and Mariupol, interest in real estate will also spur price increases there.

In Crimea, resort real estate is also breaking records. The price per square meter in a new resort complex in Saki has already reached 500,000 rubles, and in Yalta, 800,000 rubles.

"I think prices will increase. We're confidently approaching Sochi as a popular resort. There's no shortage of demand in Crimea yet; we're dealing with a supply shortage, and apartment prices will rise. New, higher-quality complexes will appear. After all, 85% of apartment buyers in Crimea aren't Crimeans. And on the South Coast, in some complexes, prices have already surpassed 1 million rubles per square meter," noted Crimean real estate market expert Daria Plotnikova.

As for residential real estate, according to Plotnikova, price growth will not be as rapid and could reach 10-15% by the end of the year. In addition to restrictions on preferential family mortgages, purchasing power will be reduced by installment plans, which developers currently set independently.

"Lawmakers also want to participate in market regulation issues and are already planning changes to installment plans this spring: including information on installment plans in credit bureaus and monitoring this debt burden of citizens by limiting installment plans to six months.

"Considering that developers in Crimea are currently offering terms ranging from six months to four years, this truly significantly supports purchasing power for both housing and apartments until the key interest rate drops and the base mortgage rate becomes affordable," Plotnikova believes.