Average cost of 1 sq.m. m in elite apartments in Sochi reached ₽2.4 million

The cost growth was influenced by low supply, high demand and the effect of sanctions.

According to the results of the first quarter of 2023, the average cost of an elite apartment in Sochi reached 2.4 million rubles per 1 sq. m, which was +14% compared to the first quarter of 2022. This indicator is a historical record in the market of new buildings in the city, according to a study by the analysts of the Kalinka ecosystem received by the editorial office.

The price level for luxury real estate in Sochi began to grow rapidly during the pandemic against the background of low supply and increased demand for resort real estate in the Krasnodar Territory, the company said. The low volume of luxury apartments in the exposition is associated with a shortage of land, as well as with a moratorium on spot construction, while demand and the uniqueness of the offer stimulates a rapid increase in prices. Also, the increase in value was influenced by sanctions and the appearance of buyers who had previously purchased real estate abroad, experts said.

The average cost of apartments in all segments in Sochi, according to Kalinka, has increased both in the primary and secondary housing market, the company said. The average offer price in new buildings in the city reached 335 thousand rubles per 1 sq. m (+37% per year). The secondary market showed an annual increase of 55% and reached 285 thousand rubles per 1 sq. m, according to the study.

Analysts at NF Group previously reported that Sochi has become a world leader in prices for luxury housing. In terms of the cost per square meter, the city was second only to Monaco and Hong Kong and ahead of New York and Singapore.