What is interesting about commercial real estate in Crimea
The Crimean peninsula has a lot of advantages. Unique climatic conditions, sea, well-established communication with the continental part of the country make the region an excellent place for investment. Commercial real estate in Crimea is especially interesting.
The infrastructure of the peninsula is developing at a good pace. New objects are being built, roads are being repaired, transport communication is improving. People buy real estate here mainly for their own residence or for recreation. However, Crimea is also interesting from the point of view of investing in commercial objects. Every year their profitability increases, the demand and supply increases. Recently, more and more businessmen are interested in the option of cooperation with management companies, which take care of real estate for a percentage of its profits.
Despite the popularity of housing as a way to earn income, commercial real estate in Crimea also shows good trends. From the profit point of view, office and retail premises are the best option for investment. They have good liquidity and are in demand among tenants. Besides, there are enough offers at the market to choose an object with a convenient location for a decent price.
The first step is to indicate the purpose of the acquisition. You should decide which object you need, whether it will be a short-term lease or you plan to lease it for a long period. It is important to select options based on the type of room to understand who will be interested in it and its location.
The payback period of the property depends on several parameters. You should pay attention to the potential of the room in terms of changes in its value over time. The more a property is in demand among tenants, the sooner it will pay off and start generating income. For the area, which will be used for commercial purposes, it is important to be located in a passable place with a large flow of people.
Usually, for commercial real estate lease agreement is for a period of more than 11 months. In this case it is more profitable to conclude a long-term agreement, which will give an opportunity to get a stable income.
Commercial facilities located in Yalta, Simferopol and Sevastopol are the most popular among investors. In these cities, the profitability of renting commercial and office space is about 10% per annum. The average return on investment is 10 years. The advantages of Crimea’s commercial real estate over residential real estate are that the first one is in demand all year round and doesn’t depend on seasonality.
The peninsula market offers a variety of options for investment. Developers understand what consumers need and try to implement projects that will meet all requirements. In large cities of Crimea every year new premises are put into operation, and the demand for them is growing.