While the economy in many places is struggling because of COVID-19, the residents of Krasnaya Polyana village in Russia are getting richer, and housing prices here skyrocketed.
Krasnaya Polyana village is located in the mountains near the Black Sea, surrounded by poetic natural scenery. It has good quality tap water, fresh air and a relaxing atmosphere – elements that are hard to find in Moscow or any other major Russian metropolitan area.
As a result, the village becomes a golden place for city dwellers looking to find a peaceful and comfortable “shelter” to rest or work remotely. The demand to buy houses here from people from other regions has pushed housing prices in Krasnaya Polyana to double. Krasnaya Polyana village is located in the mountains near the Black Sea. (Photo: Reuters) The price of land in Russia is calculated in units of sotki – 100m2. Nikolai Rogachev, a shop owner in Krasnaya Polyana, said the price of a sotki of land here has increased from $27,200 to $68,000 during the pandemic. According to him, land prices will continue to increase sharply and may reach 95,200 USD/sotki by the end of 2021, especially when domestic tourism demand increases sharply because people are restricted from leaving the country. According to data from real estate company CIAN, homes in the village range in price from $544,000 to more than $12 million. The demand to buy is mainly from wealthy businessmen in big cities, because the price of houses in Krasnaya Polyana exceeds the financial ability of ordinary Russians. Rents have also increased as many see Krasnaya Polyana as an escape from the city. It has up to 20 cafes, restaurants, pubs and bars, and high-speed internet. The village is only a 40-minute drive from the airport and the traffic is very open, convenient for short stays. “ People have noticed the advantages of the village: It is in the same time zone as Moscow, only 2 hours by flight from the capital, has a ski area in the winter, has a beach in the summer, and good infrastructure “, said Ilya Kreimer, an investor in the village of Krasnaya Polyana. Taking advantage of the potentials gained during the COVID-19 pandemic, Krasnaya Polyana is expected to become Russia’s new “Silicon valley” (high-tech commercial district).