What is happening in the real estate market in Belarus: a crisis or new trends?

Real estate in Europe and Belarus

In recent months, there has been a real surge in European real estate markets, driven by high interest in popular apartments and houses. Housing prices continue to rise, the number of people looking to buy property remains high, and the terms of transactions are mostly set by the sellers. This is why the journalist decided to thoroughly investigate the situation in the Belarusian real estate market: to find out the prices of apartments in Minsk, what is in the highest demand, and what the cost per square meter is. Irina Dontsova, the head of the real estate agency "Partner for Everyone," discussed many aspects of the current situation in this field in an extensive interview.

Current state of the market

“The intrigue surrounding country houses has somewhat diminished, although in some cases buyers are still willing to pay higher amounts,” is how one could characterize the current state of the real estate market in Belarus. Can we talk about the onset of a crisis? At the moment, the Belarusian real estate market is going through less than favorable times, but I wouldn’t call it a crisis. Since the beginning of 2020, the market has been experiencing constant changes, adapting to our unstable and unpredictable reality.

Changes of recent years

It can now be said that the last two years resemble a fast-forward movie: events that would have taken years to unfold happened in a short period of time. For example, just recently we witnessed a significant interest in country houses in the mid-price segment. The pandemic prompted many Belarusians to actively purchase summer cottages and small houses, seeking to ensure themselves a chance for isolation and secluded relaxation in nature.

Supply and demand

The demand for suburban real estate significantly exceeded the supply, and even those properties that were usually considered illiquid were snapped up quickly, often within just a month of the listing being posted. However, this year the situation has changed dramatically — interest in suburban housing has decreased significantly. While in previous years the first inquiries and calls about houses and summer cottages would come in as early as February and March, this year the first buyers only started appearing at the end of April.

Analysis of the current situation

As a result, there is an increase in supply in the suburban real estate market, and prices have started to decline.

• On average, the decline is about 15%.

At the same time, the luxury real estate segment and unfinished properties are hardly finding buyers: owners are unwilling to lower prices, while clients do not want to pay the previous amounts. Large houses built in the 1990s and 2000s, with areas starting from 400 square meters, are essentially "sitting on the shelves": there have been no viewings recorded in the past year.

Predictions of the future

Thus, the Belarusian real estate market is entering a new era, and the change in the dynamics of supply and demand is felt by all market participants. It is unclear how long this stage will last, but one thing is clear:

• Both buyers and sellers must adapt to the new environment in order to successfully execute transactions.

These times require flexibility and the ability to respond to change, which is certainly an important lesson for all participants in this market.

In recent years, the Russian real estate market has been undergoing significant changes, which are perfectly illustrated by specific examples. For example, in the Zhdanovichi area, which is only a few kilometers from the Moscow Ring Road, a house worth 140 thousand dollars is for sale. This attention is attracted by the fact that a similar plot of land two years ago was estimated at about 100 thousand dollars. The cottage in this location is a four-level construction with an area of over 300 square meters and is ready for immediate occupancy. Nevertheless, in the current economic conditions, even such an object does not cause much activity among potential buyers. A similar situation is observed with another cottage located in Tsnyanka and offered for 400 thousand dollars. The owners of this dwelling, although faced with the lack of finishing, do not lose hope for the interest of buyers, who are just waiting for the completion of the necessary communications.

Positive trends

Nevertheless, among the signs of uncertainty, a number of positive trends can be noted. Unique real estate objects with innovative layout schemes are becoming more and more in demand. In such apartments and houses, buyers are attracted by extended spaces, combined kitchens and halls, separate bedrooms, and bright panoramic windows offering beautiful views. There is also a growing interest in the market for“smart homesequipped with modern technologies, which indicates that a new stage of development of the real estate segment has begun.

Market situation

Under such conditions, the market can be characterized as a“buyer's market.”. Vendors have to adapt to new market algorithms. This means they have to:

• to lower the price of their properties,
• to make concessions,
• bring in professionals to help,
• strive to improve the quality of services provided.

Changes among buyers

In addition, the buyers themselves have also changed. One notable factor is the growing share of young people seeking to buy their own homes. If earlier the main age group of buyers was 40-50 years old, now there are more and more buyers aged 30. They are becoming the main participants of transactions on the market. It is important to note that young buyers increasingly appreciate convenience and a high level of service. The modern client is not interested in real estate that does not meet current standards of comfort.

Modern customer requirements

Quality presentation of objects, attractive photos and videos in advertisements, skillful negotiations and carefully organized transactions - this is the modern demand of buyers.

Repair preferences

Modern clients are also less inclined to make repairs or remodeling of purchased housing. They are looking for ready-made apartments and houses characterized by high-quality finishing. When it comes to country real estate, preference is given to well-maintained plots with already existing buildings such as bathhouses, gazebos and organized recreation areas with barbecues.

Conclusions

Thus, the changes affect not only prices and popular properties, but also the very image of the buyer. The real estate market is becoming more and more specialized, and in order to remain competitive, both sellers and buyers must be ready to adapt to the new realities.

Current situation in the real estate market

Recently, the real estate market in Belarus has been experiencing certain changes regarding properties under construction or mothballed. These objects have lost their attractiveness for potential buyers.

Changes on the real estate market in Minsk district

In recent years, there has been a change of trends in the market of administrative and warehouse facilities in the area of the capital of Belarus. If earlier such premises were in short supply, now potential tenants and buyers have a wide choice. Catering services are also diverse and saturated with offers, especially in the central parts of the city. At the same time, the cost of many of them is quite attractive.

Experts record a significant interest in one-room apartments on the housing market; prices for such objects start from the mark of40,000dollars, while for a two-bedroom you'd have to pay about55,000dollars.

Current trends in the housing market

The residential real estate sector is going through major changes right now. Since the beginning of spring.2022demand for apartments significantly decreased, amounting to approx.20-30%. If the owner is not willing to reduce the value of his or her home by at least a10-15%The deal is unlikely to happen. This phenomenon is leading to a gradual decrease in housing prices in the capital. Although the decline is not happening as quickly as some dissatisfied users claim, the market has indeed recorded a price drop in the range of...10-15%(in some cases even more).

Popular apartment options

As of today, apartments priced at around1100 dollarsper square meter, are in high demand. Typically, such properties have quality renovations and are ready for immediate occupancy. Buyers are particularly interested in one-bedroom apartments, which start at40,000dollars, while two-bedroom options cost around55,000dollars.

• Euro two-room apartments in the residential complex "Minsk World" are quite popular, where the rental price for furnished housing with repairs ranges from300to500dollars per month.
• Three-room apartments that do not require any renovation are usually sold for no more than900 dollarsper square meter.

The situation in the rental market

However, it is worth noting that sellers are not always willing to accept such conditions. There is a trend where properties disappear from the market because their owners are reluctant to part with the capital they have invested. Such apartments eventually appear in the rental section, but even here, things are not all rosy.

The rental market is experiencing a deterioration in the situation, which, in my opinion, is related to a decrease in the flow of tenants from other regions, as well as a reduction in the number of foreign students. The latter are increasingly choosing dormitories, which further affects demand. Moreover, the outflow of IT specialists, who could rent more expensive apartments, only exacerbates this problem.

Trends in rental and forecasts

Thus, there is not only a decrease in housing prices but also a lack of a strict link between rental prices and the dollar from landlords. Previously, renting a two-room apartment in Minsk cost around270dollars a month, now it can be withdrawn for750 rublesOverall, rental prices have decreased by at least20%.

As for future forecasts, in my opinion, only those who lack sufficient knowledge about this market can make them. The situation changes too quickly, sometimes even unexpectedly. The market conditions can change drastically. Stability in the real estate market can only be maintained if certain factors are present, the likelihood of which is quite high.

Conclusion

In conclusion of my analysis of the real estate market in Belarus, it can be confidently stated that we are in a state of constant transformation and adaptation to new realities. Against the backdrop of global changes and local crises, the price of housing and demand for it are fluctuating, creating a unique dynamic. As demonstrated in the conversation with Irina Dontsova, the director of the agency "Partner for Everyone," the market is currently experiencing tough times; however, to call it a crisis would be overly optimistic. There is not only a decline here but also opportunities for new trends.

Trends in the real estate market

The trends that are being observed are:

• Decrease in demand for country houses.
• There is a clear shift in consumer preferences towards modern and unconventional properties.
• Transition to a younger consumer who actively demands quality service and modern conveniences.

Customers are becoming more demanding, which is seen as a challenge but also as an opportunity for sellers to improve their offerings.

The future of the real estate market

Thus, despite the issues with a noticeable drop in prices and an increase in supply, the real estate market will remain dynamic and ready for changes. All market participants, whether buyers or sellers, should stay open to communication and new opportunities. The challenges we face give rise to new strategies and approaches to transactions, which can ultimately lead to a healthier and more balanced environment.

Adaptation and flexibility

In fact, this time requires all of us to adapt and be flexible, not only to catch the current trends but also to look into the future, where the real estate market in Belarus can revive thanks to new interests and expectations of buyers. A time when“normality”It may be returning soon, and then we will see new horizons for the development of the real estate market in our country.