Real estate prices have fallen in Crimea
Since the beginning of the year, prices for residential real estate in Crimea have fallen by 15%, writes “Kommersant”. The suburban real estate market has especially collapsed, where houses that were overvalued after the annexation of Crimea to Russia almost stopped selling. Buyers are scared off by the high expectations of sellers and the poor quality of infrastructure in Crimea, and many prefer the Krasnodar region, where real estate prices, on the contrary, are rising.
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The increase in prices for residential real estate in Crimea at the end of last year, when the peninsula was annexed to Russia, amounted to 46%. The pullback occurred already this year, when real estate prices began to decline steadily.
Experts attribute this to several factors. Among them are the transition period, when transactions were practically not registered, the reluctance of sellers to reduce foreign exchange prices due to the collapse of the ruble exchange rate, as well as market oversaturation.
Director of the Multidom agency Natalya Massalskaya has slightly different assessments. According to her, in Sevastopol a 15 percent reduction in ruble prices can only be discussed on the primary market. “Sellers of secondary real estate traditionally price properties in dollars and are not yet planning to reduce prices,” she argues.
However, no new developers have appeared on the peninsula yet; all projects were started back in “Ukrainian” times. And if their prices fall, this will be reflected in the secondary market.
According to the previously published theses of “World of Apartments”, potential investors are largely frightened off by negative news about the condition and work of utilities, communications and the protracted history of the start of construction of a bridge across the Kerch Strait.
Currently, sales are also negatively affected by the general macroeconomic downturn, which has forced many clients to refuse to purchase additional real estate in Crimea. Domestic demand on the peninsula has also decreased due to a sharp rise in prices for many categories of goods.
The crisis and the protracted process of registering real estate are not the only things that scare away buyers. According to the data presented on the Miel website, the cost of country houses along the entire coastline varies from $130 thousand to $750 thousand. Some properties are really overpriced; sellers prefer to focus on the US dollar, and most of them did not recalculate the price after the fall of the ruble.
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