Countryside real estate is highly prized again

Tendencies and prospects of the market development

The countryside real estate market takes off. After overcoming the crisis effects successfully, the industry opens new development phase. Sustained market growth is guaranteed by client-centeredness and further strengthening of the economy of the country.

A new hope. Financial crisis had an impact on all industries of the economy, as well as real estate market including countryside. Market volume in 2016 decreased almost by one third compared to 2015. In comparison with 2014, the decrease was 50%. The beginning of 2017 was marked by the improvement of economic indicators in different industries including countryside real estate, first of all, in Moscow suburbs and Leningrad region. Cottages that were fallen in price by one third at average in 2016 became again attractive for buyers in the spring of 2017. By the way, buying activity growth is typical for objects that have an attractive location, reasonable prices and are realized by reliable developers.

Large areas, finished decoration. Growth in the countryside real estate market is marked with several trends. First of all, increase in demand is observed for houses and land property of sufficiently large area. It is untypical for the market while for several years an inverse trend was observed with decrease in transaction costs.

Stabilization of the national currency rate and therewith financial strength of target audience played a great role: customers are again interested in big households (more than 500 sq. m) and large land properties (more than 20 Ares). Growth of elite and premium segment of the countryside real estate with transaction costs more than 30 mln RUB is observed. Second of all, houses with finished decoration and townhouses are becoming more popular in the countryside market.

Growth sources. According to the experts, development of business-segment with costs up to 15 mln RUB can be one of the upcoming trends of the market growth. However, while realizing such projects it is necessary to pay attention to requests of the customers that not only want to buy real estate, but also are interested in good access to transportation and infrastructure. Decrease in exploitation costs for countryside houses can be important for increase in demand in the market. And, finally, mortgage development also helps the market growth. Now mortgage transactions volume is about 15% of total sales in the market. It is unprofitable for banks to grant loans for buying of countryside real estate, because countryside house has low liquidity, and according to legislation, status of townhouses is not finally identified. Realtors` task is alongside with attractiveness of mortgage transactions for potential customers to make them profitable for banks.

If currently the countryside real estate market is returning to positive dynamics, in 2018 many experts expect its sustainable growth. Further strengthening of the rouble rate and general stabilization of the economic situation in the country should contribute to that. However, it will be possible to achieve sustainable rates of development if the market starts to consider all requests and interests of the customers well and truly.