Prices on the Rostov real estate market all last year grew by leaps and bounds. The Don capital has become a leader in the growth of housing prices among the cities of the Southern Federal District. The cost per square meter in the primary residential real estate market since the beginning of 2012 has grown by 13% on average.
A square meter in a Rostov new building costs 53 310 rubles on average.
The total area of multi-story housing construction in Rostov was about one million square meters at the end of last year.
The price of a meter of economy-class housing is 42,890 rubles, the middle class is 50,630 rubles, the business class is 60,920 and the elite class is 108,090 rubles. Growth was noted in all classes of residential real estate.
The average cost of 1 square meter (PDF, a source rostov.gks.ru)
Rostov Region is one of the most open for external investments in the Russian region. The expansion of business areas requires appropriate in terms of both size and comfort of office space. For example, the following business centers are currently represented in Rostov-on-Don:
Rostov became a permanent center for business, cultural, scientific and other events after it received the status of the capital of the Southern Federal District (there are 7 in all in Russia). This fact has further increased the demand for hotel services. Current prices indicate a shortage of comfortable hotels — the cost of rooms in hotels up to 3 stars today ranges from $ 80 to 200. 100% occupancy of hotels happens in Rostov quite often, despite the fact that the total number of rooms in the city is about 3,000 beds.
The Rostov-on-Don market has long been ripe for the appearance in the city of several hotels of the category of four stars of world famous brands. Now it’s important to be the first to «stake out» the best place of Rostov and get additional profitability as a pioneer.
A number of promising territories are in the vicinity of Rostov. These territories need investments of powerful representatives of the international hotel business.
The first country hotels are already appearing around Rostov and are receiving increased attention not only from business tourists, but also from those who come to the Rostov Region for amazing fishing and hunting. For example, they offer a choice of aristocratic chalets, individual hunting lodges, a family bungalow in the hotel «Old House», which is located between Rostov and Azov. Guests can use satellite TV, the Internet, a personal driver, a yacht, SPA-services.
Developers rent out more than 1 million square meters of housing per year. High current prices indicate that the market is still far from saturated. However, some of its segments are just beginning to develop. The affordable housing segment has very great prospects, the introduction of modern construction technologies could provide a breakthrough.
The direction of the construction of entire neighborhoods with an appropriate infrastructure of comfort is considered quite attractive. Unfortunately, local investors do not always have sufficient resources to develop the city on such a scale. Leading Moscow developers — PIK, ST-groups, RosEvroGrupp — have already arrived in the Rostov region. However, there is still enough free space on the market. Developers are interested not only in Rostov, but also in Taganrog, Novocherkassk, Azov, Aksay and other cities of the Rostov region. Cooperation in this area of external investors with local construction companies is quite effective.
Rostov-on-Don is just beginning to acquire suburban villages. There are quite picturesque territories where they can be erected. Demand for this type of housing is quite high, especially taking into account the location of Rostov, where the city center is extremely close to the southern suburban areas (from 1 km). The picturesque nature of the Rostov region (Don river, Sea of Azov, sand spits, steppes, groves) and good transport infrastructure favor the creation of comfortable suburban villages.
The consumer potential of the Rostov region is high: the Don cities of Rostov, Taganrog, Aksai, Novocherkassk, Bataysk are very popular among leading European retailers.
The population of the Rostov region is 4.4 million people. The incomes of the region’s residents over the past few years have been growing at rates that are far ahead of inflation. «O’Kay», «Ramstore», «Metro Cash & Carry» have already opened their shopping centers in the Rostov region. The partners of the Investment Development Agency of the Rostov Region also approached the implementation of their projects: Kastorama Rus (Kingfisher.plc), Leroy Merlin, Mosmart, Real (Metro group), OBI, Marta, Pyaterochka. Many trade formats are still not represented in the Rostov region, although the consumer market has ripened to them.
Large logistics complexes begin to be built in areas adjacent to Rostov.
Leisure, sports infrastructure
The rising standard of living of the population of the Rostov region creates a massive demand for leisure infrastructure services: cinema complexes, bowling alleys, entertainment centers, sports facilities, water parks.
This infrastructure is in its infancy. Those who decided to make their first investments in this business a couple of years ago are now reaping additional income from demand, significantly exceeding the existing supply scale. Several large projects in this area immediately started simultaneously in the Rostov region.
A number of territories of priority development and development exist today in the Rostov agglomeration. A pool of strong investors and developers is just starting to form there. Leading European, North American and Russian companies are invited to cooperate.
The territory of the Left Bank of the Don is only 1 km from the historical and business center of Rostov and is interesting for investors. Exhibition, retail, leisure, sports facilities can be erected on 120 hectares of territory. The authorities of the region are ready to consider both complex and fragmentary proposals of potential investors and developers for the development of this territory.