Analysis of the real estate market in Russia on the example of the Volga region

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Buy or rent real estate in the regions, of course, cheaper than in the capital. The cost differs significantly. But it also varies across regions. In order to understand how the price is formed, it is necessary to analyze the real estate market. As a rule, the main factor is the development of a certain region. Let's compare the prices of the Samara city of Tolyatti, the Mordovian capital of Saransk, Sarov in Nizhny Novgorod and Orsk in Orenburg. Cities of completely different significance, but one district - the Volga region.

Togliatti: real estate market

Tolyatti is the capital of the Russian car industry. Population - more than 715 thousand people. The city is young, spacious, dynamically developing. There are many factories, but the main one is JSC AvtoVAZ. It employs more than half of all residents of the city. But after the 2009 crisis, analysis of the real estate market showed that prices for residential and industrial premises fell sharply. Currently, there is no way to stabilize them. If the pre-crisis cost per 1 sq. m in the primary market was about 70,000 rubles, in the secondary - from 50,000r., then after it almost the same prices were formed - about 40,000-45,000 r. This led to the fact that the developers suffered heavy losses. In 2014, the situation was further complicated by a sharp jump in the dollar. Many people bought housing on a mortgage, and as the refinancing rate increased, the level of sales fell sharply. This was due to the fact that banks were lending at too high interest rates. In this regard, new mortgage programs with reduced rates began to appear for those who purchased primary housing.

Analysis of the commercial real estate market shows a high jump in early 2000. It was at this time that there was a great demand for industrial premises, so the construction of such buildings began in large volumes. The successful development of JSC "AvtoVAZ" contributed to the economic growth of the region. In this regard, there was a sharp jump in other areas. However, after the crisis, businessmen began to give preference to rented commercial real estate. Basically, such demand was influenced by the abundance of offers with fairly low prices.

Property in Saransk

The Mordovian capital Saransk is a small city with a low standard of living. The population is about 300 thousand people. There are many different businesses here. An analysis of the real estate market in this city shows a direct dependence of prices on the number of people living. In 2000, housing cost 50,000 rubles in the primary market, and 35,000 rubles (per 1 sq. m.) in the secondary market. At that time, there were practically no new buildings. However, sinceIn 2005, the picture changed dramatically. Saransk began to be actively built up. Now it is a very beautiful city. Not only residential areas are being built, but temples and parks are also being improved.

Analysis of the real estate market in the region in 2015 showed a sharp jump in prices:

• primary market offers prices from 65 thousand rubles;
• secondary - from 45 thousand rubles.

Commercial real estate is also experiencing strong growth. Currently, many buildings for this purpose are being built. Prices for production facilities - from 20 million rubles.

Sarov: real estate prices

Sarov is the nuclear center of Russia. It has the status of a closed city. Very small both in terms of area and population (about 100 thousand people). 90% of the people living here work at a nuclear plant. There are many soldiers in the city. The standard of living of the townspeople is above average. There is economic stability here, as it is well funded by the state. After analyzing the Sarov real estate market, we can conclude that the cost is quite high.

• In the primary market - from 70,000 rubles, sometimes reaches 80,000 rubles.
• On the secondary - from 45,000 to 65,000 rubles.

Prices almost did not fall even in difficult crisis years.

The same can be observed in the commercial real estate market. For example, a production facility of about 2000 sq. m. will cost from 60 million rubles.

Analysis of the real estate market in the city of Orsk

The small town of Orsk is located in the Orenburgareas. The population is about 230 thousand people. There are no large factories and significant facilities for the state. In this regard, the cost of housing is low:

• one square meter in the primary market is about 40,000 rubles;
• on the secondary - from 27000 rubles

Commercial real estate prices are also quite reasonable. For example, a production building of more than 1500 sq. m with warehouses and offices costs about 12 million rubles.

After analyzing the real estate market of several cities, we can conclude that price formation is influenced by factors such as the level of industrial development, population and, of course, government funding.