Which apartments are in the greatest demand and sell faster?

November 8, 2024 Pruthwiraj

In this article, we figure out which apartments are the most liquid and why. We consider which floors are best for buying investment apartments and what time of year is best for this. We explain which residential real estate is not worth investing in.Share:

Buying real estate has been considered one of the ways to invest for many years – in the long term, apartments always grow in price. But sometimes, when choosing investment housing, buyers make mistakes – they buy housing in old houses, unpromising areas, or simply at the wrong time (investors call this “misidentifying the entry point”). Let’s figure out how to buy an apartment and not go into the red, but get a profit from resale or renting it out.

The most liquid apartments

To determine the liquidity of housing, three parameters are important: area, the material from which the house is built, and the living environment.

Traditionally, small apartments, one-room apartments and studios are considered liquid – this is explained by the budget of buyers and the high demand for small apartments from young couples and single people. However, in recent years, there has been an overabundance of studios on the market, many are being built, the areas are becoming smaller – therefore, for investment purposes, one-room apartments are becoming more attractive. The liquidity of two-room apartments is supported by preferential mortgage programs, they are only slightly less in demand.

As for the material from which the houses are built, the greatest liquidity is in housing in monolithic houses. They have more opportunities for redevelopment and combining apartments, better sound and heat insulation, and often more comfortable common areas. Monolithic houses have a longer service life, which also adds to their attractiveness in the eyes of buyers.

The living environment is the characteristics of the area where the housing is located. Are there enough kindergartens and schools, what is the situation with medical institutions, are there parks or walking areas, is the transport network well developed. If all this is present, the liquidity of housing increases. But the presence of large industrial clusters, railway stations or large markets nearby (for example, the Sadovod market in Moscow) is a minus for the liquidity of apartments.

Which apartments are in the greatest demand?

Apartments that are always in demand are liquid apartments. Based on the parameters that determine liquidity, it can be said that the greatest demand is for one-room apartments in modern monolithic buildings located in prosperous areas of the city with developed infrastructure.

Additional factors influencing demand – if we are talking about secondary housing – will be the presence of a fresh, no older than 5 years, renovation and, oddly enough, the absence of furniture. Even very high-quality furniture may not be needed by new owners, and sellers most often try to include its cost in the price of the apartment. An apartment on the secondary market must be suitable for living and not require major repairs.

For rent, the greatest demand is for small apartments and studios with ready-made repairs from the developer. That is, housing that can be quickly rented out and start generating income.

When buying an apartment from a developer, the quality of construction is important – the company’s length of operation on the market, its business reputation and the presence of completed projects, the quality of which can be used to draw conclusions, can serve as benchmarks.

Which floors are the most popular when buying an apartment?

Traditionally, apartments on the middle floors are popular among buyers; they are usually considered the most profitable options for both renting out and especially for subsequent resale.

The middle floors are the floors from the third to the sixth or seventh, and here are their advantages:

There are no non-residential premises nearby. Commercial areas are usually located on the ground floors of residential buildings.
Far from the technical floor. The technical floor is located either in the basement or under the roof.
Ease of access. Apartments on the middle floors are at a level that is convenient for most residents. They do not require a lot of climbing stairs if the elevator is temporarily out of order, which is especially important for the elderly, disabled or families with small children.
More light and no leaks. Middle floors provide better lighting than lower floors and eliminate roof problems that upper floors do.
There are no problems with water pressure. On the middle floors, both with the upper and lower communications layout, there are no problems with water pressure.
Good views from the windows. In some cases, apartments on the middle floors can offer excellent views, which is attractive to buyers.
Higher level of security. Compared to the first and last floors, apartments on the middle floors are less exposed to the risk of intrusion or break-in. Theoretically, you can get to the first floors through a window, for example, from the canopy above the entrance, and to the last floor – from the roof.
Fewer problems with fauna. Apartments on the middle floors have fewer problems with insects than those on the first floors, and there is less chance of birds flying in than on the upper floors.
Less noise. The noise level on the middle floors is lower than on the first floors, especially if the house overlooks a busy highway or railway. This can be especially important for those looking for a place for quiet and comfortable rest.

What time of year is it more profitable to buy an apartment

In general, this is a subjective question and depends on many factors, primarily on the buyer’s personal situation. But there are several arguments that suggest that spring and early summer can be considered the most favorable time to buy real estate. This is explained by the following circumstances:

Demand is lower than supply. At the end of spring, the summer cottage and vacation season begins, when people go on vacation, postponing all their affairs, including the purchase of real estate, to a later date. Thus, a buyer ready to purchase real estate during this period gets more options to choose from and an increased probability of finding the best option. And also, due to low demand, real estate prices can be more flexible, and the buyer will have more room to bargain and get a discount.
Good conditions for showing apartments. Warm weather allows showings with open windows (noise levels can be assessed) and the surrounding area and quality of sidewalks around the house can be inspected. In winter, they can be hidden by snow. In addition, it gets dark late in late spring and early summer, which allows for viewings in natural light, when all imperfections are clearly visible.
The best conditions for moving. Whether you buy an apartment as your own home or to rent it out, it is easier to move in the summer, in good weather. In addition, it is easier to adapt to a new place in the warm season – you have the opportunity to explore the surroundings, walk around the area.

Which apartments sell the fastest?

One of the main factors that influences the attractiveness of an apartment for a buyer is its location. Areas where metro construction is underway or planned are more attractive to buyers – this is due to improved transport accessibility, and contributes to the growth of real estate prices. Also attractive are integrated development projects that allow for the rapid development of social and commercial infrastructure in a new area. Apartments in such projects often sell the fastest.

Infrastructure is critically important. So, if there are children in the family, it is important to have kindergartens and schools within walking distance, for older people a clinic is important, everyone is comfortable with the presence of shops, banks, beauty salons, post offices, indoor parking, service stations. Apartments in houses located in areas with developed social and household infrastructure are usually in greater demand.

Much depends on the layout – outdated options with a small kitchen, tiny hallway, low ceilings can wait a long time for their buyer. Whereas modern apartments, including European layouts with a kitchen-dining room, as well as apartments with two bathrooms, with a dressing room, sell faster.

Apartments with basic repairs or with finishing (electrical and water supply wiring, leveled walls and floors) sell faster than apartments with parquet, stucco and other designer delights – it can be very difficult to find a person or family who will feel comfortable in such an interior.

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Which apartments are better not to invest in

Housing in old buildings. In houses with dilapidated utilities, there are often problems with water supply and insects. And if there are cracks on the facade of the house, then it is better to stay away from apartments in such a house.
Apartments in residential complexes in uninhabited areas without social and transport infrastructure. Selling an apartment in such an area with a profit will be problematic until everything necessary for a modern person to live appears around. If we talk about investment housing, then this is a very long-term investment, which is not always justified.
Apartments with poor layouts. Apartments with a large loss of living space, for example, with corridors that are too large and rooms that are too small; rooms and kitchens that are too long and narrow; rooms of an irregular shape; low ceilings – all of this should make you think about the justification of the investment. Layout features that do not meet modern requirements and buyers’ preferences can complicate the subsequent sale of the apartment.
Housing in disadvantaged areas. Security issues and high crime rates – it is not advisable to buy housing in such areas, there will definitely be problems with liquidity. And with the safety of common property and amenities too.
Housing in areas with negative environmental conditions. The proximity of landfills, industrial enterprises, such as brick factories or reinforced concrete factories, may be the reason for low demand for housing in such areas.
Apartments with expensive finishing. Apartments with expensive luxury finishing are more difficult to sell, as the cost of such apartments is usually higher due to the renovation. At the same time, the interior may not correspond to the tastes of potential buyers.
Housing with an unattractive view or noisy surroundings. A view from the window of a highway, industrial facilities or other sources of noise will negatively affect the attractiveness of the apartment.
Large apartments. It is much more difficult to sell a three- or four-room apartment than a studio or one-room apartment. Such housing is bought either by families with several children or by people with a high income. There are fewer of both in percentage terms than potential buyers of modest-sized housing.
Apartments on the first and last floors. On the last floors, potential buyers will be put off by possible problems with the roof (for example, not even all insurance companies insure apartments on the last floors against leaks), and on the first floors – low lighting and high noise levels.

Still have questions? Samolet Plus will help you figure out, sell, buy or rent real estate throughout Russia.

Checklist for buying an investment apartment

Check your chosen apartment using this short checklist:

Located in a modern monolithic building.
It has a small area and no more than two rooms.
Apartment with a modern comfortable layout.
Located on the middle floors.
Prepared for final finishing or basic quiet repairs.
The apartment is unfurnished.
The windows do not face noise-generating objects.
The area where the house is located is prosperous and has a well-developed infrastructure.

Let’s draw conclusions

The most liquid apartments are one-room apartments in modern monolithic buildings, located in favorable areas with developed infrastructure. Apartments on the middle floors are usually in the greatest demand and sell faster, especially if they are located in high-quality buildings and are ready for occupancy.

The choice of an apartment for investment should always be made taking into account all the factors that affect its liquidity and the potential profit of the investor.

“Samolet Plus” is an online platform with offices all over Russia. All services for:

real estate purchases,
real estate sales,
rental properties throughout Russia.

And also various additional services:

interior design ;
major repairs of apartments ;
assistance with moving ;
furniture ;
insurance ;
real estate appraisal ;
trade-in — the opportunity to exchange an old apartment for a new one.