Yaroslavna Kryukova’s Post

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Real Estate Investment Analyst – Private Projects I Investment Activity

The Price of Emotions The shifting active trend towards acquiring land plots through auctions for the purpose of obtaining preferential mortgages for home construction has highlighted how difficult it has become to close an investment-attractive deal for purchasing a plot for the aforementioned goal. A striking case was observed during the auction for land plots in the Sontsovo district of Moscow last year. In the 20s of December, four plots with residential development rights were being sold. The auction organizer offered plots of 12 and 16 acres, with the initial valuation based on the cadastral value of the land set at 700,000 rubles per acre, while the market value was 2.5 million rubles per acre. The auctions ensured attendance from 40 to 80 potential buyers. The highest number of participants was recorded for a corner plot, which allowed for effective land division by splitting larger plots into smaller ones. The starting price for this plot was 9.6 million rubles, but the actual purchase price reached 55 million rubles, despite a market value of 25 million rubles. Our astonishment knew no bounds when the price soared to this level. We were even more surprised when we learned the name of the buyer. This remarkable individual continued to amaze us with emotional purchases throughout the second half of 2023. For more information on the actions we are taking to enable effective purchases for such objectives, you can read other notes.

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