The Belarusian real estate market has encountered significant changes heading toward 2024, characterized by brisk demand for new constructions and resale properties, alongside record levels of housing loans and steep price increases. Amidst this environment, questions arise whether the sector will continue its upward trend or shift toward stability as the year progresses.
According to real estate experts, including notable analyst Davilovich, this is currently the "golden time for property buyers." He advises against postponing the purchase of real estate for personal use but adds caution about rushing decisions. With the possibility of price fluctuations, buyers are encouraged to navigate the market wisely.
Davilovich forecasts the cost of budget housing may fluctuate between plus or minus 1-2% as we move toward 2025, indicating minimal substantial increases for the near future. This perspective is mirrored within the comfort segment, which includes older buildings constructed during the 1970s to the 1990s, albeit with modern renovations. Despite rising prices last year, he reassures buyers not to expect significant upward trends just yet.
Interestingly, the ultramodern segment, particularly elite housing options such as spacious apartments or properties located in prime areas, may see price hikes. This segment has already recorded modest price growth of around 4-5% within 2024, potentially indicating "deferred demand" as affluent buyers look for standout properties.
Davilovich points out, "2025 is not the best year for quick profits from property resale," especially considering the erratic market conditions. The opportunities for profits noticeable during 2024, where strategic purchasing during construction phases led to fruitful resale, are not projected to persist long-term. He continues to reinforce the notion of prioritizing property purchases for long-term investment rather than quick flips for profit.
Beneath the layers of fluctuation, investing for wealth preservation remains relevant. With proper selection and the option to rent out, investors could envisage annual returns as high as 5-6%, doubling returns compared to regular bank deposit interest rates hovering near 2%. This insight highlights the continued allure of property investment as savvy financial management.
Considering the rental market's dynamic, increases across rental prices have surged approximately 20% in 2024 alone, outpacing the market's real sale growth. Davilovich emphasizes choosing the right property for long-term rentals, leaning toward the comfort and comfort plus segments, which inherently promise more stability and investment growth.
Expanding on investment strategies, Davilovich asserts, "Buying to rent out Khrushchyovkas or nine-story Soviet panel buildings is not recommended," signaling caution against lower-quality housing investments. Investors seem encouraged to focus on properties aligned with contemporary living standards, offering enhanced amenities and potential for increased rental value.
The present economic climate also presents unique challenges. Despite fluctuations with the Belarusian ruble, anticipated increases will unlikely destabilize the rental market to the same extent affecting sales dynamics. Market players note the significant differences between these segments, with renting appearing more resilient.
Summing up, as 2024 progresses, the Belarusian real estate market stands on the threshold of transformation, with buyers positioned favorably, yet anchored down by realistic economic forecasts and rental sector buoyancy, continuing to underline property as a sound investment. The insights from Davilovich evoke consideration of long-term strategies, helping to shape sound investment methods amid market flux.