Unstable exchange rates, declining incomes of the population and the transition to remote work will affect the economy, the market and the purchasing power of the population. We spoke with an expert and collected his answers in a short study “How real estate demand will change: forecast 2022”.
Resale
Experts predict that the demand for real estate in the old housing stock will decline. Alexander Meldenburg, the 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.”
Overvalued real estate in major cities
For example, apartments in Sochi are considered among the most expensive in Russia – they are second only to Moscow and St. Petersburg in price. According to analysts, real estate in this Black Sea resort is overvalued – it is 30% more expensive than its real value. 1 sq. m in Sochi costs about $3,000 and more. For $50,000 you can buy a 30 sq. m. in a residential area. In Batumi (Georgia) for the same money you can buy apartments on the first coastline in a premium class complex with a sea view. An apartment with the same conditions in Sochi will cost $250,000.
Without developed infrastructure
According to Sea Inside analysts, when choosing an apartment, the buyer pays attention to two main factors – the area of the acquired property and the infrastructure of the quarter. It is important for residents to have a well-maintained house territory (preferably isolated), good roads, availability of shops, banks, schools, pharmacies and other social infrastructure within walking distance.
Without parking
More and more people are buying cars, many families have several cars, so the availability of a parking space is one of the most significant issues when buying a property. Demand for residential complexes without a special place allocated for parking will decrease.
Apartments without renovation
The modern lifestyle is when every day is calculated by the minute. Saving time in the XXI century is in the first place. People do not want to spend time and nerves on repairs, so they prefer to buy turnkey apartments. Homes without finishing are becoming less and less popular. This trend will continue in 2022.
Large apartments
Demand for buying a large apartment (more than 100 sqm) is declining. The reason is an increase in real estate prices due to an increase in the cost of building materials. The price of a square meter rises – utilities rise in price. Few people want to overpay for large areas. More popular are compact studios or 2-3 room apartments within 40-80 sq. m.
High floors
Apartments on high floors are more expensive than on low floors – on average, by 13-18%. This is due to one simple factor. High floors offer a panoramic view from the window. However, recently buyers are not ready to overpay for this plus and often choose houses from the 4th to the 10th floor.
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