According to a study conducted by analysts at the Imeretinsky Group of Companies, the Sochi resort real estate sales market grew continuously from 2009 to 2017. Last year, sales of economy/comfort and business-class housing declined for the first time, while the luxury segment continued to gain momentum.
What kind of real estate are people buying in Sochi?
"In 2017, 7,817 properties with a total area of over 341,000 square meters were sold on the primary market in Sochi. The market volume amounted to 35 billion rubles. Overall, sales decreased by 91%, although demand for luxury housing increased by 301%," the Imeretinsky resort's press service told Interfax-Tourism.
The press service noted that no new projects were launched in the business, luxury, or premium segments in 2016 due to a shortage of investment sites in the coastal areas of Sochi and Adler. "Investors are focusing on the problematic, long-term construction projects of the Sun City and Kamelia Park residential complexes, as well as new phases of the existing Morskaya Simfoniya 2 residential complex. Meanwhile, a number of projects in the economy segment were launched in 2017 in the village of Dagomys in Sochi," the press service explained.
According to the study, the largest share of housing is listed for sale in the Adler and Central districts of Sochi (481 and 401, respectively), with another 111 listed in Krasnaya Polyana. Of the total supply, 761 are apartments, 141 are residential premises, and 81 are apartments.
The market is becoming more civilized
Analysts at the Imeretinsky Group of Companies have noted that the share of "residential premises," that is, apartment buildings on plots designated for individual housing construction, has been declining for the third year in a row.
"This scheme is still widely used in Sochi: a developer buys a garden plot, which is only suitable for a private home up to three stories high. They then build an apartment building there, legalize it through the courts, and sell it under a shared ownership scheme. In this case, the premises in the building are considered part of the entire property and cannot be classified as apartments," the press service explained.
The company labeled such buildings "problematic" because their residents experience difficulties with utilities, and the building itself may be built in an inappropriate location, such as on a landslide. "Local authorities are combating this practice to the best of their ability, and the reduction in the number of 'residential premises' on the market is a positive trend," the press service concluded.
The number of tourists is also growing.
Since the 2014 Winter Olympics in Sochi, the number of tourists in the region has steadily increased, leading to increased hotel occupancy. "In 2015-2016, our number of guests doubled, and our food and beverage revenue increased by almost $1,500," reported the Imeretinsky Resort press service.
The company noted that in 2017, tourism success was even more significant, primarily due to the large number of sporting, cultural, and MICE events held at the resort.
"The World Festival of Youth and Students, whose guests stayed at the Imeretinsky Resort, significantly impacted occupancy rates – our hotel and aparthotel were fully booked during this period. We also hosted the New Wave international competition, the Gazprom Spartakiad, and numerous corporate events and training sessions," the press service reported.
The company noted that direct online bookings at the resort account for 301,000,000, while 201,000,000 trips are sold through travel agencies. "Despite the upward trend in direct sales, the tour operator market is very important to us, as we cannot reach a mass consumer audience on our own," the press service stated.
Imeretinsky is Russia's first all-season resort for recreation and accommodation, located in the Imeretinsky Valley, a ten-minute drive from Sochi International Airport.
Source: tourism.interfax.ru