The share of trophy real estate in Sochi is no more than 1%

Trophy real estate is always a rare object with unique characteristics, and the more additional options, the higher the price. Among the features of such real estate: location, individual style of architecture, unique views, exceptional set of services, spacious areas of lots.

In almost 80% of cases, clients purchase trophy real estate for permanent residence. In other cases, the purpose of purchase is investment. Such an asset is always valued in the market and is characterized by high reliability and stability.

At the moment in Russia the most trophy real estate is concentrated in Moscow, however, its share in the capital market is only about 5% of all the classes represented, and the price varies in the range of 20-45 million dollars per lot. In the resort area the figure is slightly lower: in Sochi the share of this segment is 1%, the price is at the level of 5-25 million dollars.

Trophy resort real estate is all about location. Here, first of all, the landscape and how well the project fits into the environment is important. An equally important aspect in resorts is the limited supply: these are luxury projects with unique services, concept and architecture, ecology and proximity to certain locations (forest, sea, mountains), infrastructure, transportation accessibility and mobility. All these characteristics strongly influence the value of the object.

Trophy objects appear on the market infrequently, so their supply is seriously limited, and the demand for them is high. The attractiveness of the lot, and at the same time its price, the higher it is, the more interesting location it is located in and the lower the chances of finding a similar option - uniqueness and limited supply along with the high quality of project realization are key. Most often such projects are realized in such places where it is impossible to build a new object with similar characteristics. That is why the cost of trophy lots, for example, in our flagship project, starts from 200 million rubles.

Because of the high price, trophy real estate can be referred to collectible luxury items. However, it is not limited to this characteristic. Trophy real estate is more interesting from the point of view of purchase than, for example, paintings or yachts, as it is not only a luxury item, but also a place to live. And in resort areas it is valued even higher due to nature, environmental friendliness and the increasing value of comfortable living.

The peculiarity of trophy real estate is that it is an excellent object for investment in order to increase its value. Over time, its value will only increase, also this type of asset is not subject to the fluctuations of fashion. Given the turbulence of the market and foreign economic conditions, the demand for trophy real estate in resort areas in the last 1.5 years is actively growing.

The gap in the cost of lots of mass segment and trophy real estate is increasing due to the fact that trophy real estate is the most resistant to the political situation, and its owners more easily survive instability. This asset is often purchased as an inheritance and for a long period of use, as it will not fall in value and protect savings. In addition to ownership, such lots can be used in the shearing economy and generate income. Therefore, the demand for such objects will not decrease in the future.