New builds in Russia
Location, climate, and economy
Russia (the Russian Federation) is a country located in Eastern Europe and Northern Asia, occupying a vast territory with a wide ethno-cultural representation. The country is a permanent member of the UN Security Council.
The territory is located in different climatic zones and the climate depends on the features of the relief, the proximity of the seas. In particular, the following climatic zones are distinguished: arctic (glacial, polar desert zones), subarctic (tundra, forest-tundra), temperate zone (taiga, subtaiga), temperate (forests, steppe, forest-steppe, semi-desert, desert, sub-Mediterranean zone). Temperatures in January in different regions range from +5 to -50 °C, in July - from 0 to +25°C.
The following sectors of the economy are most developed: mining, processing of hydrocarbons, metallurgical production, mechanical engineering, and food production.
Market of new builds in Russia
According to experts, at the beginning of August 2022, new builds in Russia became cheaper by two to three percent compared to June. The specialists predict that the downward trend will continue in the short term. In addition, the number of transactions for the purchase and sale of objects in new builds for sale is decreasing; now there’s less demand for apartments from developers in Russia, so construction companies are forced to reduce prices. According to expert polls, about 75 percent of the country's citizens expect further price reductions for apartments in new builds for sale in Russia.
Activity in the primary real estate market is becoming less due to expensive mortgages, the intensification of the economic crisis associated with the war, which manifests itself in the construction industry in the disruption of supply chains, and the rise in the cost of materials. Officials and individual economists expect an autumn seasonal recovery in demand for residential complexes in Russia, and an end to price cuts.
Customer reviews confirm that housing under construction in the residential complex meets the quality standards accepted in the country. Buying an apartment in Russia in a new home is sought, first of all, by domestic investors from the outback, seeking to find the best locations for work and residence, migrants from the post-Soviet space, who consider the country attractive.
Real estate prices from developers in Russia
According to the information of the GEOLN.COM website, the minimum prices for 1 sq.m of the area in a new home, handed over in a black frame condition, are as follows (in different cities of the country):
- Kazan - 1010 USD,
- Krasnodar - 540 USD,
- Moscow - 600 USD,
- Novosibirsk - 730 USD,
- St. Petersburg - 550 USD,
- Sochi - 1580 USD.
The high dynamics of price changes requires the search for information that is reliable at the time of the request.
Real estate in Russia in the new homes for sale (types)
- residential (apartments, individual houses);
- commercial: manufacturing (industrial enterprises), trade (shops, shopping centers, supermarkets), warehouses, offices, etc.
The nuances of buying real estate in a new home for sale
It is important to carry out a comprehensive detailed check in order to protect an investment in a new development from developer's dishonesty. The verification consists of the following activities:
- checking the license of a construction company in electronic databases,
- request for a document on the ownership of a land plot for development,
- collection of open data (developers are required to indicate information about objects, provide reports in public access via the Internet).
Buying an apartment from a developer in Russia is promising if the goal of permanent residence in this country is set (in one of the cities visited by students and migrants who are ready to rent housing in new developments). The risks associated with the economic crisis, political problems, and the general psychological atmosphere should be taken into account.