Krasnodar, 26 July – Yug Times. Land prices in Russia went down by 25% from June 2015 until June 2019, experts of Domofond.ru realty portal concluded upon studying the price development in the country. In more detail, lands in settlements (apt for private housing projects) lost 25.6% of their price, whereas agricultural lands became 16% cheaper. In June 2019, the selling prices were 46,900 roubles per 100 sq m in case of lands for housing development, and 30,000 roubles in case of agricultural lands.
Krasnodar has reportedly become the national leader in the speed of land prices falling down. According to Domofond.ru, the price of a 100-sq-m land plot in Krasnodar and its suburbs fell from 250,000 roubles down to 166,700 roubles over the period from June 2015 until June 2019. Krasnodar is followed by Tambov, where the prices fell from 50,800 roubles down to 28,600. Ulan-Ude came the third, with the prices falling from 37,800 roubles down to 28,600 roubles. Altogether, land prices went down in 32 Russian cities. At the same time, land prices in Sochi and Novorossiysk went up during the same period of time. The price of a 100-sq-m land parcel in Sochi soared by 41.5% from 300,000 roubles to 424,500 roubles (the seventh result nationwide); in Novorossiysk the price went up from 150,000 to 300,000 roubles (the tenth result).
As it is seen, the price of land parcels for private housing projects as well as for building of apartment houses much depends upon their location. Land in the so-called resort areas – Sochi, Gelendzhik and Novorossiysk – look most attractively, followed narrowly by such other popular cities as Krasnodar and Kropotkin. Last year, the city authorities in Krasnodar banned the ‘in-fill development’. There are no big land plots in the centre of the city left, which is why the emphasis was shifted to the suburbs: Western and Eastern Detours, Rossiyskaya street, Vitaminkombinat, Gidrostroitelei, Molodezhny neighbourhoods, and others. Although the demand for dwellings in the central part of Krasnodar (with a well-developed social basis, retail and road networks) remains high, the owners of existing homes are holding prices up, which is why the buyers tend to buy a cheaper variant on the outskirts.
Another trend is the preference for a flat in a block to land parcels as country-house projects. Absence of shops, schools, kindergartens, hospitals and other social objects, aggravated in winter season by problems with clearing up the roads, let alone insanely expensive cost of getting connected to gas pipelines, electric grids, and construction and service of sewerage system, makes country life fully unattractive.
Besides, many companies that had bought land parcels in the country aiming to re-sell them in the future but failing to build suburban or holiday settlements there, now are facing financial difficulties and thus they are eager to get rid of them.
The last but not least cause is the lowering of real household earnings that has been lasting for six years in a row. As a result, the offer now significantly exceeds the demand, so that it is extremely hard to sell a land parcel at a profit.