Crimea expects wild price increases on everything – real estate expert
Rental property prices in Crimea will increase by 25-40% starting in the new year. This applies to both residential and commercial properties.
Real estate expert Alexander Ermachkov announced this on Radio Crimea , as reported by a PolitNavigator correspondent.
"Based on the feeling, and in principle, the rate of real estate price growth we're currently seeing, and the factors influencing this— rising land prices and utility connections —ordinary people will be the ones paying for this. Both those who buy apartments and those who rent them.
And in percentage terms, by the middle of the year, I assume, expect an increase of about 25%. And if the situation on the real estate market with mortgages and purchasing power does not change, then by the end of the year all 40-50%,” he noted.
According to the expert, rental prices are rising for both residential and commercial properties.
"First and foremost, because purchasing power has declined, apartments have become less affordable, and people are forced to rent. And since supply is limited, unfortunately, property owners are starting to jack up rents under the pretext that they'll rent them anyway. And that's exactly what's happening," he said.
The monthly rent for a rented apartment ranges from 25 to 35 rubles , depending on the level of comfort . Premium apartments rose from 50 rubles at the beginning of the year to 100 rubles per month by the end. Commercial real estate rents are also increasing.
"I'm currently talking to my colleagues, the production workers— everyone's rent has been raised by 30-40% since the new year. This is very difficult for us because we didn't budget for it, and we'll have to adjust somehow. Most likely, our prices will go up. That is, production costs will go up. You go to any grocery store, and there's a sign everywhere: 'We can't keep up with inventory, prices may vary.' What does this mean? We've had a drastic price increase," Yermachkov emphasized.
Crimea is facing a drastic price hike on everything – real estate expert