Visitors prefer apartments

Accomodation for tourists

3* and 4* hotels do not get about 25% of their revenue, losing competition to "rent for a day" apartments, analitycal egancy EnterInvest concludes  in their Minsk hotel real estate market study.

3* and 4* hotels lose annually about $ 27 million of revenue due to severe competition with rental apartments: their cost is lower and the quality is on the same level as in Minsk hotels. According to experts the volume of hotel services market in the category of 3-4 stars is estimated at 97 million dollars. But main problem for hoteals are "luxury" apartments, which can compete with  5* hotels on the market.

Hotel and Apartment for rent Market in Minsk

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Time to build and sell

After fall of the real estate market in 2011 outlook is getting better and there is potential for developers to improve volume of sales, and for price increase.

This year Minsk real estate market has seen departure of several big investors. The result was that some of the projects such as Minsk City was canceled. Not enough own money and lack of bank credits were main reasons to stop building activities.

But there is another group of developers - those who remain on the market. They continue to build and sell. After a significant (around 25%) reduction of number of buildings sold last year, now this segment demonstrates stability. In September 2012, the primary real estate market included more than 70 projects.

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