Choosing and buying real estate in Crimea

Real estate in resort areas is traditionally considered a profitable investment, in addition, many citizens who have free savings simply would like to have a “house by the sea” for personal use, preferring to save on rental housing in the summer and enjoy all the usual city amenities of their own apartment or cottage.

Konstantin Fedorovich Bogaevsky. Feodosia. 1930

The most attractive and as of the first quarter of 2011 – the most rapidly being built up in Ukraine is the Crimean primary real estate market. Excellent climatic conditions, developed infrastructure, relatively affordable compared to the prices for apartments in Kiev and, of course, Moscow, the cost per square meter – all this makes the purchase of a house or apartment in Crimea extremely attractive not only for Ukrainians, but also for foreign citizens.

Primary real estate located on the southern coast of Crimea, in resort cities such as Alushta, Alupka, Gurzuf, Simeiz, Gaspra, Koreiz, Miskhor, has been in the greatest demand over the past two years. The leader in terms of cost per square meter in a new building is, of course, Yalta – the main resort town of Crimea.

The price of 1 square meter of living space in cottage settlements and elite multi-storey buildings located in the vicinity of Yalta and offering its future owners a beautiful view of the Black Sea reaches 7-10 thousand dollars. The largest cities of the peninsula – Sevastopol and Simferopol – are in second place in terms of the cost of housing in the primary market of Crimea. Thus, the average price per square meter in an elite new building in the center of the capital of Crimea reaches 9 thousand dollars, Sevastopol is slightly behind, where the average cost per square meter in an elite new building is set at 6.5 thousand dollars.

In the process of building a house, almost 30% of apartments manage to change their original owners.

Of course, elite housing in such new cottage settlements as “Alpine Village”, located next to the Massandra Palace, is not affordable for everyone who wants to get a house in Crimea. New apartment buildings belonging to the elite category, such as the Spanish Courtyard and Villa Maria apartment complex, where the future owners have a pool to the courtyard, a private beach, 24-hour security and parking spaces, are also included in the price category of the most expensive housing in the vicinity of Yalta.

Investors planning to invest in Crimean real estate have long appreciated the benefits of purchasing an apartment under construction. During the time that the house is being put into operation, the cost of apartments has time to grow by at least $ 300-500. According to developers, in the process of building a house, almost 30% of apartments have time to change their original owners..

Konstantin Alekseevich Korovin. Pier in Gurzuf. 1914

In addition, as an investment, the purchase of an apartment on the southern coast of Crimea becomes a profitable purchase and as a rental housing. For comparison, in the summer, renting a cottage on the coast will cost vacationers a substantial amount – from 500 to 1 thousand dollars. For rent of two and three-room apartments in a new building, you will have to pay from 350 to 450 dollars. Thus, the funds spent on the purchase of housing on the primary market can pay off in a few years, however, when choosing a property, it is necessary to analyze its attractiveness for future tenants, which primarily depends on the location – the closer to the sea, the better, and also the presence of a number of infrastructure facilities – shops, entertainment centers, public transport stops.

The greatest demand, according to the trend that has developed in the period from 2008 to 2009, is used by housing of the so-called business or premium class. The cost per square meter in such apartment buildings reaches 5 thousand dollars in Yalta, but in such less prestigious resort villages as Gaspra and Koreiz it is quite possible to purchase an apartment in a new building for only 1.5-3 thousand dollars per 1 square meter..

The secondary market of residential real estate in Crimea

Offers on the secondary housing market on the Crimean peninsula are also diverse – there are ordinary “Khrushchevs” and “Brezhnevkas”, and private houses. The highest cost of housing in the secondary market is also observed in Yalta – the average price was set at $ 2350 per 1 square meter. However, the range of prices in the secondary housing market on the southern coast of Crimea and in the two largest cities of the peninsula is quite large – the minimum price is fixed at $ 623 per square meter, and the maximum price – for a large private house of relatively recent construction – can reach $ 5 thousand.

Vladimir Viktorovich Kolesnik. The outside. 2005

It is in the secondary housing market, according to realtors, that housing is more often purchased for their own use. Investors who would like to make money by buying residential real estate in Crimea usually prefer to invest in new buildings, rightly believing that such real estate will last longer, often does not need additional costs for repairs and, according to forecasts for the near future, will continue to grow steadily in price.

In Simferopol, one and two-room apartment in the suburbs, in need of repair, can be bought for 30-40 thousand dollars, however, most likely, it will not be possible to rent out such housing to vacationers, and repairs can cost a fairly large sum. An ordinary apartment in Yalta, in areas remote from the embankment, costs about 60 thousand dollars, the demand for renting such housing, located quite far from the beaches, is not great, so most often such apartments are bought for their own use..

As in many resort areas, the cost of real estate in Crimea is subject to seasonal changes – in the summer, on the wave of increasing demand, the price slightly increases, and in winter, owners are more willing to provide discounts and somewhat reduce the cost.

Legal aspects of buying residential real estate in Crimea

Acquisition of real estate in Crimea is a very attractive investment in the eyes of not only residents of Ukraine, but also citizens of other states, in particular Russians. When purchasing real estate on the Crimean peninsula, it is worth remembering that, according to the legislation of Ukraine, citizens of any state and even stateless persons can buy an apartment or house, but foreign citizens will not be able to acquire a land plot related to agricultural land.

To purchase real estate in Crimea, residents of other countries, in particular Russia, will need the following documents:

• a copy of the passport translated into Ukrainian in a translation agency that has the appropriate license;
• consent of the spouse or spouse;
• an identification number obtained on the territory of Ukraine, which is assigned to all foreign citizens who take part in purchase and sale transactions;
• a document that confirms the legality of a citizen’s presence on the territory of Ukraine. For residents of Russia, a visa is not required to travel to Ukraine, such a document can be a mark made during the crossing of customs in the migration card.

When making a purchase of real estate, it is worth remembering that ownership must be registered at the technical inventory bureau at the location of the real estate object, as well as must pay taxes established by law – a contribution to the Pension Fund in the amount of 1% of the transaction value in accordance with the sale and purchase agreement and the state duty – also 1% of the purchase amount.