Luxury residential property in the Russian resort city of Sochi has become more expensive than prime real estate in cities including Milan, Miami and Dubai, Forbes Russia reported Monday, citing Knight Frank's The Wealth Report.
The surge has propelled Sochi into the ranks of the world's most expensive luxury housing markets, driven by a combination of strong demand, rising construction costs and limited supply even as Russia's broader economy grapples with volatility and sanctions-related pressures.
The amount of prime residential property available for a notional $1 million in Sochi has shrunk by 45% over the past five years, from 74 square meters to 41 square meters, Forbes cited calculations by NF Group based on Knight Frank data as saying.
Only Moscow and St. Petersburg saw steeper declines in Russia, with the purchasing power of $1 million falling by 57% and 51%, respectively.
As a result, Sochi ranked 12th globally in Knight Frank's "millionaire index," placing it between Vienna, where $1 million buys 39 square meters of prime property, and Sydney, where it buys 42 square meters.
