Where should you buy an apartment now: in Moscow, Sochi or Dubai?
With the Central Bank raising interest rates to 16% per annum, increasing down payment on preferential mortgages and the rising dollar exchange rate, many people have started to think about where it makes sense to buy an apartment now and what conditions are available on the real estate market.
Recently we compared what kind of apartment for 15 million you can buy in Moscow, Sochi, Krasnodar, Kazan or Dubai. Let us now understand where it is better to reallocate investments to control risks and income.
New conditions of favorable mortgage in Russia
- Since January, the largest mortgage banks in Russia, according to the press service of the Ministry of Finance of the Russian Federation, increased the down payment on preferential mortgages to 30%.
- Now the maximum size of the loan for preferential mortgage programs, including Moscow and the Moscow region, will be 6 million rubles. At the same time, the value of real estate is not limited - the limit applies only to the loan.
It is possible that due to the tightening of conditions is predicted imminent decline in demand for the program.
Comparisons of mortgage rates
Let's explain with a simple example. Let's take a property equal to approx.
15 000 000 rubles in Moscow, Sochi and Dubai.
LCD "Fruit" (Sochi), in which the price of a one-bedroom apartment starts from 15.4 million rubles. The property is sold without finishing, the total area is 31 square meters.
Residential Complex "Level Michurinsky" (Moscow). One-room apartment with a total area of 32.2 square meters is sold here from 15,041,129 rubles. Finishing - without walls.
Increased down payment on a favorable mortgage and reducing the maximum loan amount to 6 million rubles offers investors a difficult choice. Rising mortgage rates are likely to reduce the issuance of mortgages in Russia for housing under construction.
LCD "Stonehenge Residences" (Dubai) offers a one-bedroom apartment for 15 million rubles. The property is sold with finishing and furniture (no need to invest in repairs!), the total area is 41.62 square meters.
The down payment when booking this particular property will be 10% (approximately 1,634,367 ₽)
Return on investment when renting out
LCD "Fruits" in Sochi. When renting out such an apartment for 35 thousand rubles per month, the payback period of investment will be thirty-five years. And this is without taking into account investments in the repair of the apartment.
LCD "Level Michurinsky" in Moscow. When renting such real estate for 60,000 rubles per month, the payback period of investment will be about twenty years.
LCD "Stonehenge Residences" in Dubai. When renting out such an apartment for 120,000 rubles per month, the payback period will be approximately ten years.
Resale of real estate
If we take the average price segment of an apartment in Dubai (15 000 000 rubles), then the resale of real estate - a matter of a few months at most. Housing in Moscow and other Russian cities in the same price category can be sold for many months (from six months and more).
Additional comparisons
From the LCD "Fruits" in Sochi to the sea can be reached in 10 minutes by car. Infrastructure inside the LCD: children's and sports grounds, area for walking and recreation, coffee shop, stores.
From LCD "Level Michurinsky" in Moscow you can get to the subway in 10 minutes. Infrastructure inside the LCD: playground.
From the LCD "Stonehenge Residences" in Dubai to the sea can be reached in 15 minutes on foot. Infrastructure inside the LCD: swimming pool, gym, SPA-zone, playground.
As a result, investing in real estate in Dubai, you get a developed infrastructure inside the residential complex and walking distance to the nearest beach.
Advantages and disadvantages of buying real estate in Moscow, Sochi and Dubai
Finishing
In Russia, real estate is mainly delivered with pre-finishing or finishing. In Dubai, mostly apartments are rented with repair, and in some cases even with the presence of furniture.
Taxes
In Russia there is an annual real estate tax. In Dubai, it is completely absent.
Infrastructure
- In Dubai, many developers offer apartments with underground parking, which is already included in the price of real estate. In Moscow and Sochi there are often problems with parking lots.
- Residential complexes in Dubai are equipped with beautiful lobbies, which necessarily has a concierge. Therefore, you can return home as if you were in a prestigious hotel. Not all developers in Russia can offer such a service.
- Almost all residential complexes in Dubai offer good internal infrastructure: SPA, swimming pool, gym.
Climate
The tourist season in Dubai lasts about nine months. For comparison, in Sochi - five months. However, it should be taken into account that the UAE is among the five hottest countries in the world, so in the summer it can be uncomfortable outside. True, the authorities, as they can, solve this problem: more green areas for recreation are created, there is also an excellent air conditioning system.
Bottom line
For the same money you can afford much more than in Russia. Redistribute your investments correctly, so that in the future they will bring you only profit.
Top 3 projects in Dubai
When buying real estate in Dubai, the amount of the first payment most often depends on the installment plan and usually varies between 10-20%.
Serene Gardens II is a modern residential complex in the quiet neighborhood of Al Furjan. Well-developed internal infrastructure of the complex: swimming pool, green area, movie theater, gym will allow residents to relax and have fun without leaving home.
Completion date: 2 quarter 2026
Down payment - 20%
Cost - from 14,298,923 rubles
«Luxor Tower» - an elite residential complex located in the picturesque neighborhood of JVC. Internal infrastructure: rooftop swimming pool, movie theater, gym, sky garden, children's pool, playground, etc.
Completion date: Q3 2026
Down payment - 20%
Cost - from 16,818,810 rubles
Alef Noon Residence - is a modern residential complex located in the heart of Dubai. The territory has a swimming pool, gym and areas for comfortable recreation.
Down payment - 20%
Delivery date: Q4 2024
Price: from RUB 15,186,062