The many-sided Sochi: features of the city, prospects for investment in real estate
Sochi is not just a city on the Black Sea coast in the Krasnodar Territory of the Russian Federation. It is also the unofficial summer capital of Russia. Millions of tourists come here from all over the world, and not only in the warm months, as Sochi is a year-round resort known throughout the world.
Its popularity is due to several factors:
- The city is the best seaside balneological and climatic health resort on the planet, annually visited by more than 5 million people.
- It is the largest and busiest coastal resort in Russia.
- The Pearl of the Black Sea, as this city is often called, is the only Russian area that belongs to the subtropical climatic zone. On the territory of the Russian Federation there is no other region that could compete with Sochi in terms of its rich flora and favorable climatic conditions.
- At the same time, the summer capital of Russia is the only city located on the territory of the Caucasian State Biosphere Reserve.
- Infrastructure and social life.
In Sochi, tourists will find many luxury hotels, hotels, popular sanatoriums, boarding houses and recreation centers all year round, including children’s camps. The developed tourist and not only its urban infrastructure, stunning mountain landscapes, endless pebble beaches and a rich nightlife — this is the key to the attractiveness and demand for recreation here.
An interesting fact: from May to September, the number of people living in Sochi grows at least twice every year due to the influx of tourists and business travelers. Yes, the city attracts not only vacationers — multimillion-dollar contracts are concluded and world-class business meetings are held in Sochi: congresses, festivals, exhibitions, including those initiated by the largest domestic and foreign companies. Tourist and business life is in full swing here.
Features of the climate by seasons
In Sochi, you will enjoy up to 300 sunny days a year — no other region in the Russian Federation can boast such an advantage, not counting the territories of the Krasnodar Territory adjacent to the city. Of course, there is a lot of rainfall and high humidity, but the abundance of sun more than outweighs this regional feature.
In summer, vacationers are attracted by the sea; in winter, by ski resorts. In the springtime, Sochi is buried in blooming gardens, but the spring season itself is short, the sea does not have time to warm up to a comfortable temperature for swimming.
The summer season is standard — from the second week of May to the end of October; most of the tourists visit the city in July-August.
In September-October, you can still swim in the Sochi sea without fear of freezing, but the air temperature is gradually starting to decrease, and the rows of tourists on the streets are thinning every day. If you are interested in the attractions in Sochi, rather than a beach holiday, the first two autumn months are the best time to visit this city.
Since the end of October, the amount of precipitation gradually increases, the number of sunny days gets smaller, and the sky is now and then covered with clouds. And by the last weeks of November, the average temperature drops to 10 degrees Celsius.
What about real estate?
For the reasons listed above, Sochi real estate is in great demand among both permanent residents and guests of the city:
- the opportunity to have your own cozy house or apartment by the sea and near ski resorts;
- the prospect of a profitable investment with great potential — it is profitable to rent housing in Sochi all year round.
A sharp jump in demand for real estate in Sochi took place about a year ago, during the outbreak of the coronavirus pandemic. And the level of demand for houses and apartments in the main resort city of the country has not subsided to this day, exceeding all the most daring forecasts of analysts. Since early 2021, demand has been much higher than supply.
- Suspension of construction — fewer new properties are being brought to the market.
- The pandemic alteration.
- The introduction of a moratorium on the construction of apartment buildings, which will enter into force in July 2021.
- A moratorium on the issuance of permits for the construction of housing associated with the renewal of the general plan of Sochi (according to forecasts, the ban will last at least 1-2 years).
What are the forecasts regarding the dynamics of the real estate market in Sochi?
In the near future, according to experts’ forecasts, the steady rise in real estate prices in Sochi will continue. Therefore, it is more profitable to invest in it now for a number of reasons:
- Real estate on the coast, especially in such a popular resort area, is always a profitable investment.
- In Sochi, the cost of real estate only increases from year to year, with rare exceptions — the purchase of housing and commercial objects here will save capital from inflation.
- With the right selection of the property, Sochi real estate will bring stable additional income from renting or investing not only in the «high season». Note: with the current rent in the city, investment apartments in Sochi now pay off twice as fast.
- The pearl of the Black Sea is developing — new objects and micro-districts are built with everything necessary for both recreation and permanent residence, attracting significant capital and large companies here.
All these facts indicate that the price of real estate in Sochi will not fall and will not stop growing in the coming months — it’s time to invest, it will only be more expensive afterwards.
What kind of real estate to invest in in Sochi
If you are interested in small-sized apartments, it is more advisable to give preference to buildings in residential areas. The proximity of the property to the coast is also important, especially if you plan to rent out your housing in the future or come to Sochi on vacation.
If beach entertainment and profit from tenants are not your goal, pay more attention to the size, rather than the prestige of the area, the hundreds of meters to the coast and the presence of entertainment facilities nearby.
In both cases — both if you buy for investment purposes and if you buy housing for yourself — you need to carefully analyze the situation on the real estate market. As of July 2021, the most promising segment in the Sochi housing market is primary real estate from developers. In the first half of this year alone, prices in this sector have grown by 25-30% in general, and depending on the property category, the price jump reaches 50%. This is due to a stable increase in demand without any fluctuations.
Note: every year the number of people who want to buy real estate in Sochi increases by an average of 10-15% — competition among investors is growing.
«Aventine & Kompanion. Real Estate Sochi»: a guarantee of reliability and legal cleanliness of transactions
If you are interested in real estate in Sochi, please contact «Aventine & Kompanion. Real Estate Sochi» — the full cycle of real estate services awaits you:
- consultations, assistance with the selection of properties, developers, mortgage programs, buyers;
- support at all stages of the transaction;
- verification of documents (ownership rights, including third parties, analysis of the history of the transfer of ownership, the presence of encumbrances, etc.);
- legal advice, services of lawyers, notaries.
By contacting «Aventine & Companion. Real Estate Sochi», you will receive comprehensive assistance and support in representing your interests and during the conclusion of the transaction. For details, please contact the managers: (contacts).