Changes in the key rate and mortgage lending conditions became one of the significant topics at the end of 2023 and beginning of 2024. Against this background, investments in real estate show stability, although investors carefully monitor the situation and select lots that demonstrate high profitability in the current realities.
One of the most popular formats is apartments, which can be both a source of passive income and a liquid asset that allows you to make money on resale against the backdrop of rising prices. Moreover, investors are showing particular interest in projects located in the Krasnodar Territory, where, against the backdrop of growing tourist flows and population migration, demand remains at a consistently high level.
Emergence of the format
Historically, apartments in Russia were originally a special type of real estate – with a very specific purpose. Their predecessors in our country are apartment buildings, which were very popular in the 18th–19th centuries. As a rule, they were multi-apartment buildings with housing for rent. Many of those buildings later became architectural monuments, such as the Muruzi house in St. Petersburg or the house of Zinaida Pertsova in Moscow. By the time of the 1917 revolution, apartment buildings accounted for 50–80% of the total housing stock in Moscow and St. Petersburg.
Even then, the best architects and engineers were involved in the construction of such facilities; electricity, water supply and sewerage were installed in them, which was not commonplace at that time.
Such investments in the comfort of apartment buildings were justified: in this way it was possible to increase the liquidity of this property and make it more attractive to clients.
Modern developers adhere to approximately the same approach to the construction of apartments. Although in terms of convenience of living, the availability of additional services and status, they are certainly much superior to their predecessors. At the same time, the purpose of the project remains the same – effective rental.
Apartment is not an apartment
The key difference between apartments and apartments is that they do not belong to the housing stock. This gives rise to certain nuances and specifics.
Yes, the apartments cannot be permanently registered. But a temporary one is possible, and it gives almost the same rights. It is issued for a period of up to five years, but can subsequently be extended.
By their type, apartments are commercial real estate, so most often such projects are implemented in the most attractive areas – with an excellent location and all the infrastructure necessary for life. Which naturally increases both the cost of such lots and the rental price, allowing residents to receive higher passive income.
Utility payments in apartments are higher. However, in return, the resident receives service at the level of a good hotel. In most cases, the apartments employ a service company that furnishes the premises, searches for tenants and serves guests.
The service is the main argument in favor of choosing apartments for rent. Since this relieves the owner from the need to independently take care of the effective use of this type of real estate.
Bet on service
Thus, the most profitable and prestigious apartments are located in iconic locations, in points of attraction that attract a large number of people. First of all – in big cities, regional centers with good transport accessibility.
In particular, the investment holding AVA Group is selling The Grand Palace apartment complex on Uralskaya Street, in the business center of Krasnodar. Entertainment centers and many shops are located nearby. If we think from the point of view of short-term rental, this location is ideal for those who come to the city on a work visit or are traveling towards the Black Sea coast by car. For those who plan to live for a longer period of time, convenient logistics and proximity to various commercial infrastructure will be a plus.
The advantages of The Grand Palace were also noted by the expert community: in 2023, it became a finalist of the Federal Urban Real Estate Urban Awards in the category “Best regional complex of comfort-class apartments.”
According to the project, residential areas start from the fourth floor and are represented by lots ranging from 25 square meters. m. On the lower floors of the complex there are shops, a supermarket, a lobby, a cafe and a spa center. On the third floor there are storage rooms and utility rooms for serving guests.
One of the distinctive features of the project is an open terrace on the third floor with a coworking area and outdoor exercise equipment. The apartment complex building has two entrances: the northern lobby, through which you can enter the residential areas, and the southern one, for guests using the infrastructure of The Grand Palace. Moreover, both spaces are connected to each other by a convenient passage. For those traveling by car, comfortable underground parking is provided.
All apartments are handed over to the owners with full finishing. The only thing left to do is place the furniture. And for those who plan to transfer their apartment to trust management, a furnishing service according to the standards of the hotel operator The Grand Palace is available.
According to calculations by the marketing and analytics department of AVA Group, an average annual increase in the value of such real estate is predicted at 8%, and rental income is about 12.9% per annum.
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