Prices for real estate in Odessa are going up, what should we expect? The analysis of real estate market and the selection of cheap offers
Despite the fact that the summer will end soon, buyers are storming seaside regions. The primary and secondary are not an exception. Here, the square metre cost has increased by a one third in a couple of months. What is going on with new buildings and has the demand for apartments in Odessa (also known as «the Pearl of the Sea») increased? You will find the answers on Realting.com.
What is going on in the primary real estate market of Odessa?
According to the service, since the beginning of the year new buildings in Odessa increased in price by more than 36%: in the end of January the average square metre cost on the primary market was 581$, but by the end of June it valued 793$. The most expensive district, as was expected, — Primorskiy (literally translates as «by the sea») where the average price of a square metre was 1180$. The cheapest options are in Suvorovskiy district, where a square metre costs around $611. If we consider the prices in accordance with the quantity of rooms in flats, then the approximate price for a 1-room flat is 40 000$, a 2-room flat — 60 000$, a 3-room flat — 75 000$. At the same time, the cheapest options are estimated at 12 000$ and more.
What’s really interesting, that a square metre in the new buildings of a premium class only in a month has risen in average price from 1220$ to 1465$. At the same time, prices on the primary market of business class real estate stopped at 842$ per square metre. Unconditionally, many developers taking into consideration the current circumstances and the high riskiness of such investment, regularly hold promotions and make special offers suggesting these or that apartments for more attractive price.
In general, the rise in costs for new buildings was quite expected. Among all reasons experts name such factors as increase in costs for construction materials, the complexity in all branches of logistics, dollar fluctuation, and an increase in construction costs overall. We should also consider the fact that the supply on the new buildings market went down significantly: in the beginning of the year you were able to acquire a flat in 172 new residential buildings, but already in the middle of 2022 only 105 were offered.
How are things on the secondary real estate market of Odessa?
The secondary market, as a rule, reacts more keenly on all the changes around. According to experts’ opinion, in the period from March until May 2022, in many Ukrainian cities a new type of seller turned up. And they are those who needed to sell their properties as soon as possible, and they were ready to provide discounts up to 30%. By the way, a lot of investors didn’t miss such an opportunity. Talking about the discounts, Odessa is not an exception. Until now there is a large number of bargains on the market, however we point out that these offers are running out. Those sellers who are ready to wait have withdrawn their ads from the profile sites or do not make any concession on a price.
Since May the work of Real estate registries has continued, and realtors got back the opportunity of registering transactions. But it didn’t get by without several restrictions. For example, it’s forbidden to sell the property that was obtained less than 30 days ago (inheritance is an exception); it’s forbidden to issue a power of attorney, both parties (a seller and a buyer) must be present; transactions can only be made in the area where the property is located, and etc. All these limitations are mainly directed to prevent speculative transactions while the market is going through hard times, but some of the strings literally speed down the already low number of transactions. For instance, the prohibition of issuing a power of attorney, which could simplify the process in case an owner or their spouse is abroad, but they want to sell their property in Ukraine.
The main demand on the secondary market is represented by ressetlers, who prefer than to rent it. Herewith, accommodation costs near the sea in Odessa are still on the pre-war level, and no considerable fall should be expected. Besides, realtors predict that the postponed demand will take hold and buyers will engage, the supply will fall.
The selection of cheap real estate in Odessa from Realting.com database
A flat for $14,700
A one-room flat with a total area of 32 sq.m. is for sale in Dalnitskaya Street, Odessa. According to the seller, the apartment is equipped with all necessary furniture and appliances: the kitchen has a refrigerator, a microwave oven and a hob. There is also a washing machine. The living room has a sofa bed and a desk.
The seller claims that one of the advantages of this option is the location of the house. There are sports and children’s playgrounds, a gym, shops, kiosks and a market near the house. There are also cafés, restaurants, pharmacies, banks and shopping centres within walking distance. If you want to go for a walk, there is a park nearby. In addition, the owner will be able to use his or her own parking spot in the area adjacent to the house.
A flat for $17,660
A beautiful modern studio flat is for sale in a house on Kosmonavtov Street. The apartment has a total area of 15 sq.m. and is located on the ground floor of a five-storey building. According to the seller, the flat has a high quality renovation with the replacement of all communications, a built-in kitchen.
The house is located in a nice and quiet neighbourhood in a cosy quiet courtyard. Near there is all the necessary infrastructure: shops, cafes, supermarkets, market. School and kindergartens are within walking distance. Gorky Park, which is also not far from the house, is a great place to go for a walk.
A flat in a new building for $18,650
A flat in an unfinished new residential complex on Krasnoslobodskaya Street. According to the seller, it will be an apartment with a sea view with a total area of 23 sq. m. The apartment is located on the 4th floor of a five-storey building.
The building is located in the Matrosskaya Slobodka area which boasts a well-developed infrastructure with a lot of shops, restaurants, cafes, a market, hospitals, children’s clinics, schools and kindergartens. The city centre is only 10 minutes away by car, the sea is about 15 minutes away and there is a public garden and Dyukovsky Park a 5 minute walk away.
The ad states that the house is at a high stage of construction.
A flat in a new building for $19,130
A new-build apartment is on the market for $19,130. The house is located in the 9th Quarter residential complex on Inglese Street. The complex has a secured territory, underground parking, children’s playgrounds, recreational areas, shops and everything you need for comfortable and safe living. The mall «City Centre» and Gorky Park are within walking distance.
This is a studio apartment, total area 25 square metres, located on the top floor of a twenty-four storey building. The state: fair-finished by the builders. Each room is equipped with 5-chamber metal-plastic windows, and there is also a system of «smart home», which allows you to adjust the temperature in the flat at any time of year.