Sochi real estate market

Sochi real estate market breaks records for price growth

Sochi is the main resort of Russia, which annually receives about 5 million tourists. In addition to the Black Sea, there are a large number of health resorts that operate year-round. The uniqueness of this place is that it is the only one in Russia, which belongs to the subtropical climate zone. Not surprisingly, the real estate market in Sochi is developing intensively.
The resort can boast of many hotel complexes, health resorts and boarding houses. For vacationers in the city there is a large number of catering establishments, nightclubs and shopping centers.
Sochi is positioned as a year-round resort, in the summer you can bask on the beach, and in winter to conquer the snowy peaks in the ski complexes. Therefore, the purchase of real estate in the city is an extremely profitable purchase, which will bring a high income year-round.
The trend of increasing demand for residential properties during the pandemic has also affected the Sochi market. Prices have skyrocketed following it, and they are fuelled by limited supply. The reason for the shortage of real estate was the suspension of construction for the period of quarantine restrictions, as well as the moratorium on the construction of apartment buildings. Against the backdrop of growing demand and the influence of these factors, the cost of housing continues to rise, and the trend will continue over the next 2 years, until the moratorium is lifted. In favor of the purchase of real estate and the fact that the rent rate also goes up, the payback period was reduced by almost 2 times. One should also understand that the number of those wishing to buy properties in Sochi is increasing by 10-15%, and against the background of a shortage of supply it makes it difficult to find the ideal property.

Sochi real estate market-2

The choice of housing to buy depends on the preferences and financial capabilities. A popular option for future rentals are small apartments. In this case, it is better to look for objects in areas with well-developed infrastructure and close to the coast. If the property will be used for personal residence, the availability of nearby noisy nightclubs is not necessary, so you can choose an apartment in remote areas, where the cost is slightly lower.
The biggest demand is for new buildings; during the first 6 months of the year the prices there grew by 25-30%. Experts noted that investments in hotel apartments are becoming popular. Such a purchase provides an opportunity to spend the holidays in their own homes, and at other times to rent it. In this case, all the hassle of finding tenants and servicing the property is taken care of by the management company. The owner pays a certain percentage for such services.
Sochi – the largest resort in Russia, which is actively developing. Therefore, investing in the real estate market here will be an excellent solution to receive a stable income or reasonably save money from rising inflation.