2024 Resort Real Estate Development Prospects

In general, 2023 showed that fluctuations in the key rate did not have a significant impact on resort real estate, especially in the premium and luxury segments. The latter are least susceptible to the influence of the market situation, always remaining one of the most stable classes of real estate. The tightening of preferential mortgage terms was felt most in the comfort and business segments. In the luxury and premium classes, purchases are made primarily through installments or with one’s own funds, so these segments were least affected by the mortgage situation.

The trends observed in the Sochi resort real estate market in 2023 will continue in 2024. An increase in the share of fitted out offerings, the use of ecotechnologies, emphasis on wellness and vitality in projects, stabilisation of the area of lots by class - all this will remain in the coming year. Against the backdrop of the popularity of domestic tourism and an increase in tourist flows, there will be a gradual increase in prices for resort assets, primarily for high-quality premium class projects.

Sochi will continue to develop simultaneously as a center for both business and health tourism. The demand for business travel will lead to an increase in the share of corporate rentals of resort apartments and the emergence of new projects with serviced apartments, continuing the trend of previous years. If in 2022 there were only 3 projects with serviced apartments in Sochi, then in 2023 there were already 8, with the majority in the Adler District and Krasnaya Polyana. The increase in the number of projects is influenced by the characteristics of Sochi: a comfortable climate, the beauty of the area, various opportunities for recreation and wellness, a combination of sea and mountains, the availability of spaces for business events, logistics.

The increase in the cost of premium service apartments for 2023 was +0.4%, while in 2022 it was +28%. Prices stabilised due to the growing demand being met. The cost of business class lots in 2022 increased by 12%, and in 2023 it increased by 0.8%.