How will the real estate market develop in 2022 and is it worth investing in real estate? Expert opinion: forecast of new trends and evaluation of old ones | Sea Inside.
When making forecasts for real estate in 2022, analysts first of all pay attention to the fact that in 2021 prices soared, a sharp rise in the price of building materials. Wood, brick, fittings, metal-plastic windows and doors, electrics have risen in price several times. Economists predict that in 2022 prices for concrete, cement, sand, gravel, paint and varnish products will rise by 10-18%.
Alexander Makeev, co-owner of Sea Inside, explains the rise in prices by two reasons - global inflation and closed borders due to the pandemic.
“The isolation of Asian countries has especially affected. It is in these countries that the largest manufacturers and suppliers are based. The disruption of supply chains against the backdrop of preserved demand, coupled with global inflation, has produced such a result. Another factor is the desire of the big powers to reduce dependence on oil. They began to develop "green energy", but it turned out that it was not enough to meet the demand for fuel. As a result, transportation has risen in price, which means that the prices of the goods themselves have risen.”
Since materials occupy more than a third of the market value per square meter, the increase in construction costs will affect the development of the market. Experts expect that against the backdrop of continued demand, real estate prices will rise in 2022. At the same time, construction trends in 2022 will remain the same as last year - the demand for new buildings will exceed the demand for secondary housing. Alexander Meldenburg, head of the Sea Inside
sales department, explains this trend with two reasons: “Firstly, the state of secondary housing is deteriorating from year to year. Secondly, over time, the secondary property loses its value, so from an investment point of view, this is not a profitable investment.”
Speaking about how new buildings will react in 2022, experts emphasize that the demand for large areas (more than 100 sq. M.) Will decrease. Increasingly popular are compact studios or 2-3 room apartments within 40-80 sq. m. Another trend from last year, which will be relevant in 2022, is the reduction in demand for real estate without repair. Accordingly, apartments with finishing will be more in demand. Buying a turnkey apartment for an investor is an opportunity to quickly start renting it out and earn money.
Investors interested in purchasing real estate for income, experts recommend to hurry up - the old, attractive prices are still in effect. Many developer companies have already begun to raise prices.