RESORT REAL ESTATE POTENTIAL

On the Russian Federation's resort real estate market there is a growing tendency towards the implementation of larger, more comprehensive projects in the field of premium-class real estate. With increasing frequency, new housing developments offer a wide range of additional services included in the infrastructure of a residential complex. A moratorium on the construction of new residential complexes also strengthens the tendency towards renovation of existing buildings or health resort complexes.

One of the negative trends existing on the market is related to completion time extension or the use of lower-cost finishing materials and engineering systems due to supply constraints and the lack of availability of a number of foreign materials and systems. In that regard, such risks were taken into account and eliminated well ahead of time in the MANTERA Seaview residence project by concluding contracts for necessary materials and construction components and carrying out their supply well in advance.

According to analysts of specialized property developer (SZ) ""Sochi-Park Pyat Plus"" and resort real estate specialists of Knight Frank, the deficit of resort real estate in Russia amounts to 2 million sq. m.; the demand for this category of assets drastically exceeds the supply. A significant growth of domestic investments is observed, and investors are aware that the demand on the domestic investment market will remain steady over the coming years. New promising business models approach the market; for instance, professional hospitality providers are involved in apartment hotel management, while anyone can act as an investor (as in the case of serviced apartments). This model has already proven successful in Sochi. Thus, it is possible to draw the cautious conclusion that the hotel business is about to grow not only in terms of volumes but also from the point of view of quality.