prices for premium-class projects in Sochi's coastal cluster increased by 99.7%

For the first time in Russia, prices for premium-class projects in the coastal cluster of Sochi increased by 99.7%.

Analysts of the development company FIVE analyzed the market of projects on the coast of southern Russia for 2021-2023. During this period, demand for expensive housing in Sochi caused price growth in the "premium" segment - plus 99.7%, which was a new record in the resort real estate market.

From March 2021 to June 2023, the cost dynamics is differentiated in different segments: premium properties added +99.7% in price (in some projects the growth reached a record 260%), business class housing and apartments went up in price by 32.6%, and comfort class real estate on the contrary went down in price by 1.4%.

While in coastal projects of comfort and business classes in the period from January 2022 to June 2023 stagnation is observed - the cost of supply fell by 0.2% and 1.4% respectively, elite real estate showed growth by 23.7% and less price sensitivity to the crisis phenomena, continuing to enjoy consistently high demand.

Elena Kabesheva, Commercial Director of resort real estate developer FIVE: "Positive indicators of the premium segment of resort real estate significantly influence the diversification of projects by classes. This is confirmed by the dynamics of primary supply distribution depending on the year of commissioning. If business and premium class real estate with a delivery date of 2023 occupies 8.1% of the total supply in the coastal strip of Sochi, then with a delivery date of 2025 and later the share of such properties is 14.5%. The total share of business and premium properties in the supply today has reached 25.6%".