The Crimean real estate market is reviving - thanks to Kherson certificates
Crimea's construction industry is gradually recovering from last year's shock and decline in residential sales. The market has been revived thanks to preferential mortgage programs and housing certificates, but full stability is still a long way off, Darya Osadchaya, marketing director of one of the region's leading construction companies, told Radio Crimea, according to a correspondent. "PolitNavigator".
“Active demand for housing has probably not yet fully recovered, and we are still seeing a moderate increase in demand. But, nevertheless, migration activity to our region continues to grow, and the presence of the “Kherson certificate” significantly fuels demand in the secondary real estate market, she noted.
– About a quarter of the money that is released from the sale of secondary real estate is still invested in “primary” real estate. That is, people want to improve their living conditions, and this 25% of the proceeds are invested in housing for themselves.
And here we must say that in the near future, at least we hope so, the demand for the purchase of two-room and three-room apartments will revive.
Buyers are already actively looking to improve their living conditions, trying to move from secondary real estate to newer ones with new high-quality infrastructure and a modern urban environment.”
Purchasing one-room apartments with a mortgage and then renting them out to repay the loan, although still relevant, is often not justified. And the point here is the difference between the mortgage rate and the rental price of housing.
“There are such transactions, but it is not necessary to say that this is a mass phenomenon, since from this year the rate on preferential mortgages has increased by 1%. Today, family and preferential mortgages with state support are probably the most popular type of mortgage, and the monthly payment is not always less than the rent,” Osadchaya pointed out.
– But this type of business is relevant in Crimea, because the rental rate for one-room apartments continues to grow due to a certain increase in migration. This is due both to the annexed regions, from where people move in search of work, and to state support in the form of a housing certificate.
The fact is that people most often consider one-room apartments as investments, and the fact that today we are recording some revival in demand for two- and three-room apartments in projects at a high stage of readiness suggests that, after all, people want to live in more comfortable conditions.
But “kopeck-room apartments” and “three-room apartments” are always sold more actively in finished houses, because in houses under construction about 80% of sales are still investment transactions - people invest money in square meters in order to at least save their money, and, at a maximum, increase it by resale of finished housing.”
Crimea and the Krasnodar Territory are leaders in sales using housing certificates. This has greatly fueled the demand for secondary real estate, since the certificate cannot be used in an equity participation agreement - only for the purchase of ready-made housing.
“There is no reason to talk about cost here, since the price of secondary real estate very much depends on demand, and prices continue to rise. That is, while it is possible to use a housing certificate, sellers speculate on this and continue to raise prices. And today the price per square meter on the secondary market is even higher than on the primary real estate market. Because people want to receive ready-made housing and immediately live in it,” Osadchaya noted.
“Moreover, the housing certificate is used only under a purchase and sale agreement, that is, for finished housing, and this has greatly cut off the number of people wishing to purchase primary real estate - Kherson residents cannot yet purchase apartments under an equity participation agreement.”
The representative of the development company added that construction time is now much reduced, since the developer pays interest to the creditor bank for each day.
“The construction period has now been greatly reduced, this is due to the developer’s obligations under the loan agreement,” the expert explained. – According to Federal Law 214, developers cannot directly raise money from owners for the construction of new housing, so they take out borrowed funds, and here another additional regulator appears, including the price regulator. This is a bank that provides developers with project financing, and in order to pay interest on this loan agreement for a short time, developers significantly reduce construction time within acceptable standards. Today, before putting into operation any house takes about a year and a half, and this is a short period of time to wait for a comfortable new home to be ready.”
English version :: Read in English The Crimean real estate market is reviving - thanks to Kherson certificates