Unsold Apartment Developments: Eight Russian Locations Encounter Risk Factor
Check out the scoop on high-risk areas for selling new housing in Russia, brought to you by bnMAP.pro and slammed into you by RBK Real Estate!
Eight unwanted locations have been tagged as havens for housing development hell, also known as the red zone. These regions are plagued with excessive construction, and sales ain't exactly sizzlin'. To fully unload the leftover square footage in these areas, builders are looking at wait times of over three years, a drag that's considered a red flag.
Why's everybody in the red zone feeling the burn? Krasnodar Krai is taking the top spot. To sell off the remaining square meters in new buildings, it's gonna take around 5.6 years, amounting to a staggering 1.7 million square meters. The monthly average sales rate's a measly 24,600 square meters here.
Samara follows close behind, with a monumental 711,200 square meters of leftover real estate needing four-point-eight years to sell, averaging 12,400 square meters per month.
Vladivostok sneaks into third place in the red zone. Builders will need 3.9 years to liquidate the remaining square footage, amounting to 1.3 million square meters, while averaging 26,700 square meters per month in sales.
Other hotspots of housing woe include Krasnodar (3.8 years), Krasnoyarsk (3.8 years), Tyumen (3.4 years), Ufa (3.2 years), Crimea (3 years), and Kazan (3 years).
But fear not! Not every region's a dumpster fire. The yellow zone represents regions with a moderate level of risk. These regions can unload their unsold building square footage in a bit less than three years (2 to 2.99 years to be precise). Regions in this zone include Omsk, Yekaterinburg, the Republic of Tatarstan, Voronezh, and Novosibirsk, among others.
Finally, breathe a sigh of relief, folks! Sevastopol and Moscow lead the green zone. Builders in these regions will only need 1.6 years and 1.8 years, respectively, to sell their remaining square footage. Moscow's got a whopping 7.6 million square meters to sell, averaging 352,500 square meters per month.
Why's the housing market turning sour in some regions and sweet in others? bnMAP.pro's analysts point to the balance between demand and the volume of supply as the determining factor. Seriously, it's not about the total amount of unsold inventory—it's about sustainability. And you should keep your eyes peeled for changes in the mortgage market, as it plays a vital role in the housing predicament.
Intrigued? Check out DK.RU for more intel on the ever-unpredictable Russian housing market, including low-interest mortgage programs and other juicy deets!
- Builders in Krasnodar Krai are facing a long wait of around 5.6 years to sell off the remaining square meters in new buildings, an issue affecting a staggering 1.7 million square meters.
- Samara ranks second in the red zone, with 711,200 square meters of leftover real estate needing nearly 4.8 years to sell, averaging 12,400 square meters per month.
- Vladivostok is third in the red zone, with builders needing 3.9 years to liquidate the remaining square footage, amounting to 1.3 million square meters, while averaging 26,700 square meters per month in sales.
