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Demand for suburban real estate in Russia sees 77-percent increase after lockdown

Demand for rental country houses also increased by 35%

MOSCOW, July 15. / TASS /. The demand to buy country homes in the suburbs in Russia climbed 77% in early July 2020 after most of the restrictions imposed over the coronavirus pandemic had been lifted, according to data from the Avito Real Estate portal released on Wednesday.

"At the beginning of the quarantine in April and May 2020, there was a boom in demand for rental cottages, which exceeded 3.2 times the pre-crisis figures, and after the abolition of the self-isolation regime, the purchase of suburban real estate became the highest priority format - interest in acquiring such housing in property increased by 77.7% year-on-year " the study said.

At the same time, demand for rental country houses also increased by 35%. The interest of Russians in suburban real estate also affected prices. So, in Q2 2020, houses and cottages for long-term rent went up by about a third. The average cost per month of living in a house reached 20,000 rubles ($281.3), and 80,000 rubles ($1129) in a cottage. The rental of cottages has risen in price by almost 18%, up to 20,000 rubles ($281.3), town houses - by 10%, up to 50,000 rubles ($705.5) per month.

According to Avito Real Estate, the most expensive cottages are sold in the Moscow Region (average cost of almost 12 mln rubles ($169,000), the Leningrad Region (almost 10 mln rubles ($141,107), the Tomsk Region (8.2 mln rubles) and the Crimea (7.8 mln rubles) . The lowest cost of cottages for sale was recorded in the Rostov region (3.1 mln rubles), Bashkiria (4.5 mln rubles), Tatarstan (almost 5 mln rubles), Sverdlovsk and Chelyabinsk regions (5 mln rubles).

"The desire of Russians to live in their own home and not abandon comfortable infrastructure may affect the revision of developers' approaches to future projects. So far, developers are still skeptical about the growing trend and will look at it in the coming months. If it proves its worth, then we will see a change on the real estate market, and the focus may shift slightly in favor of suburban housing, "said Dmitry Alekseev, head of the primary and suburban real estate Avito Real Estate.