Predicting economic development in any region is difficult, especially if you are an investor looking to acquire some assets at a reasonable price before an economic boom.
Nevertheless, there are metrics that allow investors to see the general direction a region is taking in terms of its investment attractiveness. Those who have invested or are looking to invest in Crimea are likely to enjoy the recent good news. Standard of living, one of the key metrics in investment opportunity evaluation, is showing growth in the Crimean peninsula. And with greater standard of living comes a more affluent population that is likely to translate into a good return on investment.
Investors are likely to take note that the government is seeing great potential in the region and is acting on that potential by improving and adding vital infrastructure. The upgrades done to the Simferopol airport is a sign that the amount of tourists visiting the peninsula is expected to rise. Those expectations are well founded, as last year alone the number of tourists visiting Crimea increased by 10% compared to the previous year. Additionally, the region is receiving vital investment into its road infrastructure, which, in some cases, was in critical condition. Now, the road network adheres to all modern standards, boosting trade and movement of people as a result.
But tourism and internal trade is not the only focus for the Cimean development plan. Addition of new power plants aims to boost the manufacturing sector, making a confident step toward realising the goal of becoming a net exporter of goods. This means that those looking for a lucrative industrial investment might find a good deal in Crimea, especially early on, with the opportunity to take advantage of many government programs. Some are already doing exactly that, with the manufacturing output in some Crimean regions increasing by up to 250 per cent.
Another good sign is the government’s focus on the general
standard of living of Crimean residents, and not just on the parts of the
peninsula that see a high flow of tourists. One of the primary projects in that
area is the improvement of residential infrastructure. In the last few decades
it has seen some serious decline, with structures built in the late 60s and
early 70s needing some urgent repair. There are funds dedicated to that, but
also an open investment opportunity for building new residential complexes. The
government has allocated land for another four hundred new multi-story
residential buildings and other infrastructure to go along with them, such as
schools, kindergartens, clinics and others. This opens a plethora of
opportunities for real estate investors and developers looking to invest
in a growing region.
Much is also being done in the area of trade, where there used to be significant problems. Basic groceries and products were more scarce in Crimea than in mainland Russia, resulting in exorbitant prices being charged for basic necessities. The government is implementing stricter anti-monopoly regulation, and the new rail link between Crimea and mainland Russia should take care of any shortages in short order.