There are fewer developer projects now, while demand for Crimean property with Russians is really low. According to experts, that is all due to poor logistics.
“If there was demand, there would be mega cities and satellite cities built around Simferopol,” said Ernst Mavlyutov, Simferopol’s Chief Architect and Deputy Mayor, during a press conference.
Russian investors are wary of investing in Crimean economy due to costly and poor logistics between the peninsula and Russia. According to Mavlyutov, it is ‘all about logistics so we are all looking forward to a bridge being built’.
High logistics costs between Russia and Crimea have also caused Russian construction materials to increase in price.
“Yes, there has been an increase in price. Yes, we cannot bring in all the construction materials on a timely basis, so we are having trouble implementing the federal target program. However, I would not call this price hike catastrophic. And that is why businesses are currently trying to figure out how it will affect them. And since local developers and investors are more knowledgeable about the situation here, they are more interested in making money here (than Russian investors - QHA),” said Mavlyutov.
According to him, Russian businesses are still interested in investing in Crimea, because they are waiting for a bridge which the Russian authorities promised to build in 2 years.