Huts at the price of palaces: real estate prices in Sochi are raised by a ban on construction

Experts associate the rise in prices with the rise in prices for building materials, the suspension of the construction of apartment buildings in the city and the pandemic.

In the warmest city of the country, Sochi, there is a boom in real estate. A square meter costs the same in the southern resort as in the capital. Experts say that private houses have especially risen in price. Over the past few years, their cost has grown by 100-150%, TASS reports. As in the rest of the country, prices for building materials have increased in the city. This is primarily due to the rise in metal prices.

But there are also local peculiarities. This summer, the authorities imposed a moratorium on the construction of apartment buildings. Until the adoption of the new general plan, they will not be built in the city yet. As they say in Sochi, there is not enough free land in the city, so the area of individual houses was also limited. Now the private houses being built cannot exceed more than 300 square meters, and their height is 12 meters. If the owner wants to build a house larger than the specified size, he will need to go through a public hearing.

Due to the pandemic, there is an influx of nonresidents in the city who, due to the danger of quarantines, want to move to the warm sea. The residents of Sochi themselves, not wanting to stay in cramped apartments, want to exchange them for houses. If three years ago a house in Sochi could have been built for 4.5-5 million rubles, real estate expert Andrei Fludkov told the TASS agency, now the price tag is close to 10 million in not the best place in the city and in the Adlerovsky district.

There is not enough land in the city due to the fact that Sochi is located on the territory of a national park and reserve.

Experts believe that there will not be a sharp jump in prices in Sochi, but real estate will steadily rise in price both in the near and medium term.