Property is becoming cheaper in Crimea
Moscow in 2014 of Ukraine After annexing the Crimean peninsula, the Russians began to actively buy property there. But at the end of February 2022 Russia Since the start of the full-scale war against Ukraine, this trend has weakened, with real estate prices falling by 72 percent in a year.
The port city of Kherson a month after a part of the Crimean bridge was destroyed in October Ukraine by the forces free Since then, property sales on the peninsula have almost stopped.
Since the occupation of Crimea, up to 800,000 Russians have moved to Crimea permanently. Some of them bought apartments and houses to spend vacations there or to rent.
In early 2022 prices increased to 60 percent. Some decisions of the bodies appointed by Russia also played a role in this. For example, last summer, authorities in Sevastopol delayed the issuance of building licenses until the city’s new development plan was adopted. The market reacted to this immediately, if the price of one square meter in the city was 85,000-95,000 rubles ($1,180-$1,320) in April, it rose to 120,000 rubles ($1,670) two months later.
Last June, the price of real estate in Crimea fell by 72 percent compared to a year ago. This is reported by Idem consulting company.
According to the calculation of “Restate” digital platform, the average price of new buildings in Sevastopol in May was 207,300 rubles ($2,885) per square meter, but in December it fell to 147,500 rubles ($2,055). This means a 29 percent decrease in six months. In general, the price of houses in Crimea in 2022 10 percent decrease was recorded. The war in Ukraine is expected to worsen the situation.
“There is no demand from abroad, either pricesand this factor mainly increased the volume of sales”, – Partner of Analytical Corporate Group real estate marketing research company Ilya Pichuyev he says.
According to Pichuyev, of Ukraine As a result of drone attacks on Crimea, sabotage, and air defense activities, many do not want to invest in the area close to the war zone.
On the other hand, due to the increasingly uncertain situation in Crimea, many Russians are trying to leave the local real estate market at any cost.
Realtors say that the advertised price of the property is reduced by up to 50 percent at the time of agreement. https://www.instagram.com/krymskayagildiya/?hl=en
And this affects all segments of the market, everything from luxury real estate to cheaper properties.
“Apartments in our complex were sold well all year round, until autumn… the demand stopped in October. Those who want to buy until the end of the year have decided to wait and postpone their plans until after the New Year, or even until spring.” – Marketing director at a resort complex near Yalta Irina Romanova said.
“To this political the environment has caused uncertainty about it, and there is no convenient logistics for the peninsula. Not everyone is ready to come from afar and buy real estate, it is problematic to come and see, there are no plane flights. – he says.
Another reason that deters Russian investors Kyiv what will be their ownership status if they regain control of the peninsula. Ukraine The authorities have made it clear that in this case, most of the Russians who bought property in Crimea will lose it. In this case, real estate sales contracts cancellation It can be done.
According to experts, the peninsula free if done, local courts will have to deal with thousands of such painful cases for Ukrainians. We are talking about Ukrainians who re-registered their property in Crimea during Moscow’s occupation or sold property to Russians. Experts say that Ukraine all property of its citizens should be returned to their rightful owners, losses compensation should be.