Yelena Stryukova: ‘Most individual housing development deals in Tatarstan are signed by millennials’
A review of the countryside real estate market in Kazan in 2024
Demand for country houses is rising in Russian regions. Moreover, half of the buyers are buying this real estate for permanent residence. Experts say this format is popular because of the both seasonal factor and the fact that with the end of preferential mortgage for new-builds, Russians switched to individual housing development because preferential programmes remain in this segment. Plenipotentiary representative of the Russian Guild of Managers and Developers in Tatarstan, managing partner of Perfect RED Yelena Stryukova explains more about trends of the Kazan market of country real estate in an op-ed column for Realnoe Vremya.
Offer: more than half parcels are Economy Class
The total supply of the market of organised cottage villages of Kazan and its urban agglomeration is represented by 54 facilities. The total number of parcels in these villages is 20,433. The total area of village territories is 2,329 ha. But besides these facilities there is information about 73 organised cottage villages where developers stopped or suspended sales. The total number of parcels in these villages is 17,604.
From a perspective of supply in village class, more than half supply in the number of parcels (54%) is Economy Class. Comfort Class is represented by 20%, while Business and Premium Class are by 26%. The villages were segmented according to the class indicated by the developer.
Kazan (24%) is second in popularity, Vysokaya Gora (19%) and Zelenodolsk Districts (13%) are third and fourth. Verkhny Uslon (7%) and Pestretsy (4%) Districts are last in the rating of popular destinations.
Demand for land parcels is up by a third
The trend for buying rural real estate appeared in 2020 during the pandemic, quarantine and people were locked in their flats.
According to the Tatarstan office of the Russian State Registry, demand for land parcels this March increased: 9,200 deals (+30.8% against this February and +39.4% against March 2023); individual residential houses are second in the rise of the number of deals, their number in March was 944 (+14.6% against this February but -16.3% against March 2023).
The grown number of land deals in the Republic of Tatarstan in 2023 was +12% compared to 2022. In Kazan, this indicator grew by 8%. The peak of deals during the pandemic in 2021 still remains an unattainable record.
Analysis of retrospective data shows stable positive dynamics in number of land sale and purchase agreements, which demonstrates high demand in this segment.
Loans for 4.3 billion granted for individual housing development in Tatarstan
Around 500 loans for 2.6 billion rubles were granted in the Republic of Tatarstan in 2023 for individual housing development, which is 0,49% of the total number of mortgages granted in Russia. It is 1.8 times above the result of 2022. Tatarstan is in the top 5 Russian regions in the volume of loans for IHD. Over 800 loans for 4.3 billion rubles have been granted in the republic since the launch of IHD loans in 2021.
As for the target audience, according to DOM.RF, most deals in Tatarstan in 2023 were signed by millennials (born in 1977-1995) — around 80% of all loans were for IHD. The youth (from 1996) accounted for 9%. While representatives of an older generation (1960-1976) granted 11%.
Moreover, half borrowers in IHD are men (59%). The share of married clients rose to 78%. In 32% of the cases, families with one child took out a loan for a private house, in 28% — families with two children. Clients with many children signed another 7% of the deals. One in three doesn’t yet have a child.
“We see a shift of tendencies of the market of blocks of flats to rural real estate”
In the last few years, the market of blocks of flats followed a path of product improvement and enhancement of the quality of living environment. Now comfortable public areas, automation of safe access and registration of utility services, diversity of outdoor, leisure and sport infrastructure are expected components of modern urban developing.
We see a shift of tendencies of the market of blocks of flats to rural real estate. High competency in the market of cottage villages is stimulating the creation of well-thought-out concepts and village projects with infrastructure facilities added in: kindergartens, shops, cafes, health poss. The era of construction on areas with roads and connection to communications, without commercial facilities with functions citizens need. At the same time, boundaries between village classes will be blurring: infrastructural improvements that used to be characteristic of Business Class villages only will gradually flow to Comfort and Economy Class.