Several years ago, apartments appeared on the residential real estate market. These objects differ significantly from apartments, and their purchase and further residence have their own nuances.
According to Russian legislation, apartments are hotel rooms of a higher category of comfort with a total area of at least 40 square meters.
They consist of an equipped bathroom, a dedicated kitchen area, and two or more living rooms.
The first apartments were built in Europe at the beginning of the 20th century. In essence, these are home-type mini-hotels.
In Russia, such real estate first appeared in Moscow in the early 2000s. (business center Moscow City). Currently, apartments are being built in huge quantities. There are several reasons for this:
Apartments are not synonymous with apartments. The key difference is that, despite their suitability for habitation, they are not documented to be classified as residential housing.
A number of other differences can be noted:
Peculiarities | Apartment | Apartments |
total area | No restrictions | From 40 sq. m |
Possibility of registration | Available | Only temporary registration can be issued for a period of up to 5 years. After this time, the temporary registration must be extended. It is not possible to register for the apartment on a permanent basis. |
Receiving a tax deduction | Maybe | Impossible, since tax deductions are provided only for the purchase of residential premises. |
Property tax | Every year, apartment owners pay real estate taxes. | Apartment owners cannot avoid paying taxes either. At the same time, the tax rate will be slightly higher compared to residential properties. |
Internal characteristics of a property during the transition from developer to owner | The apartment can be transferred in a condition either “with finishing” or without it. | Upon completion of the construction of the apartments, the developer is obliged to carry out finishing work in all premises. |
Availability of a landscaped local area and social infrastructure | Provided for by building codes for residential buildings. | The responsibilities of the apartment developer do not include landscaping of the local area. The property is not residential real estate. Accordingly, it is not necessary to have, for example, a playground. |
Coordination of premises redevelopment | Coordination of redevelopment and reconstruction is necessary. | Permitted by law (not affecting load-bearing structures) do not require approval. |
Common property | In residential buildings, apartment owners can jointly decide on the fate of attics, basements, technical and other premises at a general building meeting. | In apartments, the owner can dispose of real estate only within the premises he owns. All other issues are resolved by the management company. |
Nature of acquisition | Mainly for the purpose of further residence. | Most often for investment purposes for subsequent |
Price | According to the market segment under consideration. | 20-25% cheaper than the price per square meter in a residential building located in the same market segment. |
Tariffs for calculating the cost of utilities | The cost of utilities is calculated according to the tariff schedule provided for residential premises. | When issuing monthly utility bills, the increased tariffs provided for commercial premises are used. |
Buying a property | Most apartments on the real estate market can be purchased in. | Banks are reluctant to provide loans for the purchase of apartments. Financing is possible either at higher rates or within the framework of programs secured by existing real estate. Objects of this kind cannot be purchased using maternal capital and other “stimulating” government programs. |
The real estate market offers different types of economy and elite class apartments:
Typically apartments appear where:
Speaking about the positive aspects of buying and living in an apartment, the following can be noted:
Among the disadvantages are:
The share of apartments in the real estate market is growing.
Compared to apartments located in the same market segment, the price per square meter in apartments is approximately 20-25% lower.
The difference in cost is due to the fact that:
For example, the cost of apartments in Moscow starts from 7 million rubles (LOFTPOST complex), in the Moscow region - from 3 million rubles (Start-Format complex in Tsaritsyno), in Sochi - from 4.5 million rubles, in Bulgaria - from 25 thousand Euro.
Purchasing such real estate is one of the ways to invest.
Owners often rent it out long-term or daily. An apartment owner can earn 10-15% more on rent than an apartment owner:
In the understanding of Europeans, apartments are housing intended for sale or rent. Similarly, in Russia, investors often purchase such real estate exclusively for commercial purposes.
The optimal option is to create a small apart-hotel, whose guests can count on home-like living conditions and a full range of services, just like in a regular hotel. This goal can be achieved by purchasing, for example, several apartments located under one roof.
The hotel industry is very competitive. In order for renting apartments to generate income, it is important to master the situation in the rental market and come up with new and innovative ways to attract clients. Renting a conveniently located apartment is much cheaper than a hotel. Therefore, they are in demand among tenants.
If just a few years ago this type of real estate was considered “outside the law”: for example, it was impossible to obtain even temporary registration in apartments, now many legal issues have already been resolved. Developers are building apartment complexes that are in demand among buyers in places where residential housing construction is formally impossible, and the number of proposals is growing steadily.
1. Lower price
The difference in price between regular apartments and apartments is about 10-15%, although in some cases it can reach 30%.
However, in the context of falling incomes, the supply of inexpensive traditional housing increases, due to which the difference in cost between apartments and ordinary apartments is reduced.
2. Freedom of planning decisions
Quite stringent requirements for planning and redevelopment for ordinary apartments are not imposed on apartments, which follows from their legal status (non-residential premises). In particular, the apartments do not have a distinction between residential and non-residential areas, which makes it possible to organize premises for various purposes in almost any private apartment.
For comparison, bathrooms and sinks in traditional apartments must be located in certain places. There is a decree prohibiting the transfer of a bathroom or kitchen to a place in an apartment located above the living quarters of neighbors below.
3. Exemption from property tax in case of use of apartments as workshops, ateliers and studios
According to paragraphs. 14 clause 1 art. 407 of the Tax Code of the Russian Federation, individuals using apartments exclusively as workshops, studios and studios are exempt from paying property tax.
1. High taxes
From the point of view of tax legislation, apartments are classified as “other premises” and are generally subject to real estate tax at a rate of 2% of the cadastral value.
A preferential rate of 0.5% of the cadastral value has been introduced for owners of apartments in shopping and office centers in Moscow. However, even this rate significantly exceeds the property tax rate for ordinary apartments (0.1 - 0.3% of the cadastral value). At the same time, to receive benefits, apartments must meet a number of requirements (see the article for more details). As of the end of October 2016, the list of Moscow apartments whose owners can count on benefits included only 7 properties.
When purchasing apartments, it is impossible to obtain a tax deduction for personal income tax (13% tax exemption), which every Russian citizen can receive once in a lifetime when purchasing a home.
2. Reduced requirements for illumination, noise insulation and insolation
The apartments are not subject to sanitary rules and regulations established for residential premises and establishing the level of illumination, sound insulation and insolation. Therefore, developers often will not comply with these standards in cases where it provides them with cost savings.
3. Inability to obtain permanent registration
Apartments do not provide permanent residence rights, which, in particular, is necessary to fully use the city’s infrastructure.
Registration at the place of stay is possible in cases where the apartments are managed by specialized institutions, which include hotels, holiday homes, etc. In this case, registration can be issued by the corresponding specialized institution. However, such registration must be renewed every five years.
4. Possible lack of infrastructure in the surrounding area
Since apartments are not considered housing, they are not subject to the requirements for creating in the immediate vicinity all the infrastructure necessary for life (schools, kindergartens, clinics, etc.).
The requirements for providing parking spaces and landscaping in the local area for apartments are lower than for residential buildings.
Also, developers are not obliged to equip the area adjacent to the apartment complex for recreation and sports for adults and children.
5. Possible proximity to busy offices
Often apartments are located in the same building with busy office spaces, which can create inconvenience for recreation and sports. Mothers with strollers and people with limited mobility may face particular challenges.
6. High service fees
Tariffs for utilities and building maintenance for apartment owners are usually higher than for owners of traditional apartments, since in the case of apartments the management companies themselves set the tariffs. Moreover, the cost of these services for apartments is calculated at the rates of legal entities, not individuals.
The apartments are not subject to the provisions of the Housing Code on the procedure for managing the common property of the building. Therefore, apartment residents do not have the opportunity to influence the tariffs set by the management company.
As practice shows, apartment owners pay 15–35% more for utilities and building maintenance than owners of ordinary apartments.
7. Noise from neighbors using the apartment as workshops
Despite the fact that the apartments are mainly used for permanent and temporary residence, they can also be used as workshops, ateliers and studios (which is more consistent with their status). In this case, you may become hostage to constant noise from neighboring studio apartments, since the requirements for maintaining silence imposed on residents of ordinary apartments do not apply to apartment owners.
It may also turn out that due to the type of activity of your neighbors, a large number of strangers will move in the immediate vicinity of your apartment, which will violate the privacy of your residence.
8. The danger of living in apartments resulting from the reconstruction of former industrial buildings
Apartments often appear as a result of the reconstruction of old industrial buildings, which in the past housed production, the activities of which affected the environmental safety of the structure and soil, and also affected the strength of load-bearing structures.
Living in apartments is more expensive and comes with certain inconveniences, which is offset by the lower price of this type of housing. Before purchasing an apartment, you must weigh the pros and cons to decide for yourself whether the lower price of the apartment will compensate for all the hardships and inconveniences that you will be forced to endure while living in it.
Many developers and apartment sellers say that over time the apartments can be converted into residential real estate. But in practice, this is only possible if they meet all the requirements for residential real estate. But the apartments are initially built without complying with a number of requirements for housing. Therefore, converting apartments into housing is usually either impossible or requires large expenses.
The concept of “apartment” is associated with luxurious, stylish real estate, which has magical advantages over simple housing. However, from a legal point of view, we are not talking about housing at all. Apartments are commercial real estate belonging to the non-residential fund.
So what is the difference between an apartment and an apartment? Apartments belong to the non-residential stock and can even be located on the territory of office shopping centers, while an apartment is a housing stock. However, these two categories of real estate have one thing in common - they are truly intended for living!
Apartment concept clearly regulated by law - this is real estate for human habitation, which must comply with all construction SNIPs, as well as sanitary and fire standards.
Apartment concept is not enshrined in Russian legislation. It is only stated that they must consist of at least two living rooms, a kitchen, and the obligatory condition is that the total area of the premises is more than 40 sq.m.
Apartments | Apartment |
Non-residential fund | Housing stock |
Minimum area - from 40 sq.m. | The minimum area is not defined |
Minimum 2 living rooms | Minimum 1 living room |
Possibility of permanent residence | |
Possibility of temporary registration for 5 years | Possibility of permanent/temporary registration |
Increased property tax | Regular property tax |
Luxurious interior with modern appliances | Regular repairs depending on the wishes of the owner |
Developed infrastructure nearby | The infrastructure depends on the status of the house. However, it may not exist at all. |
Cleaning is usually done by staff | Cleaning is done by the owner and his family |
Those who purchase apartments know their advantages in advance.
Such real estate for permanent residence is chosen by out-of-the-box thinking people who like the surrounding space to match their personality. The apartments emphasize the high status of its owner.
It is not possible to obtain permanent registration in the apartments. Only temporary and only if this property is a hotel complex.
According to practice, it is possible to register at the place of residence in an apartment, but only if the documents provide for the purpose of being a hotel and only temporarily, for a period of 5 years. Of course, after 5 years you can register again and so on an infinite number of times.
If, according to the cadastral passport, other technical documentation, and most importantly - in the unified Rosreestr database, the purpose of the building is stated - a shopping or office center, and also if the purpose of the apartments themselves is directly indicated for offices, catering establishments or other forms of commercial use, then it is impossible to register in the apartment, even temporarily.
When registering, a lot depends on the purpose of the building:
However, buyers of such housing, as a rule, have other housing and are aware of the impossibility of registration and do not ask such questions.
Despite the external luxury and elevated status of such real estate, there are also serious disadvantages of the apartments.
When purchasing such housing, it is important to focus on the area of the room. If the property includes a local area and common areas, then the owner must know that the tax will be calculated on the entire specified area
Much depends on what is written in the title documents, what information is contained in the cadastral passport and the unified Rosreestr database.
The minimum that is possible when calculating the tax on this type of real estate is 0.5%, and the maximum is 2% of the cadastral value (see). Let us remind you that a tax rate of 0.1% is provided for simple housing.
The difference is colossal, but what does it depend on?
In order to pay a tax rate of 0.5%, property in the form of apartments must simultaneously meet three requirements:
If at least one condition is not met, the tax increases to 2%.
When purchasing an apartment, it is important to pay attention to the area of the room. If the property includes a local area and common areas, then the owner must know that the tax will be calculated on the entire specified area.
By the way, tax deductions are not provided for apartments, as for apartments, rooms and houses.
When comparing utility bills for apartments and apartments, we must not forget that we are talking about residential and non-residential assets. For any non-residential premises in our country there are fixed tariffs for utilities. The difference, of course, is not stunning, but it is 10%, and in some houses 30% higher than in ordinary apartments.
There is one more nuance here - the services of a management company. Usually there is a standard list of services that they provide and which the owners cannot refuse (concierge, intercom, cleaning the territory, etc.). For apartments there is a special list of services for which you will need to pay extra. For example, cleaning the room, ironing clothes, etc. Apartment owners are not provided with such comfortable conditions.
At present, legal practice is not yet so extensive as to answer this question unambiguously. Yes, such precedents exist. An important condition is the consent of all owners of the building, because apartments are often considered shared ownership.
In Moscow, there are known cases of converting multi-storey buildings from apartments to apartment use. But here it is worth paying attention to the fact that the transfer of apartments to housing became legally possible only thanks to the legal process and the competent approach of lawyers.
A simplified procedure, without trial, has not yet been worked out at the administrative level. When purchasing apartments, you simply need to understand this nuance.
Apartments have always been perceived by Russians as luxury housing and were considered an attribute of luxury and wealth. Today, becoming more and more accessible to the average consumer every year, they are rapidly gaining popularity. At the same time, this format of real estate is unusual for us and in many ways incomprehensible. People who are planning to buy living space in a new building in modern realities are first of all looking for answers to the question: apartments and apartments, what is the difference?
To understand, you first need to understand what apartments essentially are.
Their main difference from apartments is that they belong to the category of commercial real estate rather than residential.
This largely explains why they are often located in business districts, office buildings and large hotel complexes, and the construction of new apartment buildings is carried out in very prestigious urban spaces that are very attractive to potential buyers.
The apartments have a thoughtful modern design internally and externally and all the necessary communications. In terms of their status, they are equal to hotel rooms: just like hotels, they provide comprehensive services for residents, including services for keeping the housing clean, 24-hour security and a parking space. In this case, the premises are the private property of the owner.
According to experts, the cost of apartments is on average 10-15% lower than the cost of an apartment of similar size.
Considering the situation on the real estate market, this indicator is quite significant, especially considering that for many people apartments will be more convenient: business people, accustomed to living at a frantic pace, are not always ready to commute for a long time to work every day. For most of them, it is much more practical to live close to their office. And taking into account that apartments are most often ready-made turnkey housing, in addition to saving money when purchasing, the owner of such real estate is relieved of a number of additional worries.
Most of the apartments available for purchase are located in residential areas of the city or new buildings. This is due to the fact that, as a rule, there are few people willing to sell their square meters in the center, and there is practically no space for residential development in the heart of the city.
As for commercial real estate, which includes apartments, it is absolutely possible to obtain permission to build it in the central areas. Thus, buyers have a real chance to purchase affordable housing not somewhere on the outskirts, but in the very center.
According to realtors, purchasing apartments is a good investment. Today, about 20% of apart-hotels are built with investment support. The income from renting out the most attractive of them can be 9-12% per annum. This is much more profitable compared to apartments, which can only yield 4-7% over the same period of time.
However, you need to take into account that apartments are only profitable to rent out.
Reselling this type of housing can be quite difficult, since most people, when choosing a place to live permanently, still prefer apartments.
Most of the apartments are located on the territory of buildings that previously belonged to plants and factories. This is an undeniable advantage from an architectural point of view. There are a lot of options for interior and exterior decoration solutions, which makes it possible to create a unique design.
In the premises you can often find fireplaces, terraces adapted for a winter garden, panoramic glazing and many other extraordinary solutions.
To make redevelopment in the apartment, you do not need to obtain special permission for this, provided that the changes do not affect the structure and will not affect the reliability and general safety of the building. And that means, without exaggeration, you can create the home of your dreams!
Thus, the apartments have quite significant advantages compared to the apartments everyone is used to. And yet, in this barrel of honey there is also a fly in the ointment. This housing format has its drawbacks, which you also need to be aware of. If you have a choice between an apartment and an apartment, you need complete clarity about the difference between them.
Who are you willing to entrust the management of your home to: a management company or an HOA? Find out what is really more convenient and profitable for you in.
Without unnecessary nerves and queues, transmit your electricity meter readings using the Internet: .
Despite the fact that apartments become property upon purchase, they cannot be registered at the place of residence. Being commercial real estate, such premises cannot legally be called housing. Even obtaining temporary registration is possible only if the apartments are part of an apart-hotel or hotel.
Commercial real estate developers are not obligated to construct such socially significant buildings as schools, kindergartens and clinics.
Realtors usually try not to focus attention on this issue, citing the fact that apart-hotels are built in areas with already existing developed infrastructure. However, it is worth understanding that a large increase in unregistered residents may exceed the capabilities of already existing social district institutions. There is no point in hoping that this issue will be resolved by itself. In this regard, serious everyday difficulties for residents are possible.
Since apartments are commercial real estate, utility bills for them are calculated differently than for residential premises. Cold water costs on average 10% more, hot water – 21%. Heating costs will increase by approximately 22%. This is what the situation looks like if the apartments are directly connected to city networks. And if there are intermediary organizations, utility bills turn out to be even more expensive.
The tax on apartments is also calculated based on their status as commercial premises. Moreover, if for housing located in apart-hotels and hotels, the rate is 0.5% of its cadastral value, then apartments included in retail and office complexes have a rate of 2%.
Compared to apartments, the rate for which is 0.1-0.3%, the tax burden on apartment owners is much higher.
Apartments are a fairly new phenomenon: both the Housing and Tax Codes do not say a word about their owners. Therefore, the buyer of such premises can safely forget about his legal right to a property tax deduction as a taxpayer, as well as about subsidies and benefits when paying for utilities provided to the owner of a home with an income below the legal norm.
When asking yourself the question of what is better: an apartment or an apartment, you should first of all understand what their difference is.
For what purposes is the property being purchased, how will it be used, and how reasonable the purchase will be, based on its consequences, is a serious reason for the future owner to think carefully.
Watch the video for an explanation from a specialist: what you need to know before buying a home.
This format of real estate, such as apartments, is still little familiar to Russian buyers. Meanwhile, the average person, faced with the need to purchase housing, may be faced with a choice: should he buy an ordinary apartment or an apartment? At first glance, the only difference between them is the price, but is that true? What are apartments and what are the pros and cons of this property, read in this article.
Apartments are a new concept in the real estate market, which has existed in the West for a long time, but came to Russia quite recently. Experts associate the emergence and spread of this format of real estate in our country with the construction of the famous “Moscow City” in the capital - it was with the construction of this business center that the sale of apartments located there began in 2006.
From a legal point of view, apartments are a separate living area of at least 40 square meters. In this case, the apartments consist of two or more rooms, they must have a bathroom and a kitchen.
Experts note that now there are four main types of apartments on the market:
Apartments are often perceived on the housing market as a fashionable trend with a lot of advantages: price (lower than a “standard” apartment), transport accessibility, developed infrastructure, what more could you want? However, experts warn: this property has one significant drawback, which entails a number of other inconveniences: housing, which attracts buyers at a price that is usually 20% lower than the cost of apartments, has the status of non-residential premises.
Let us remind you that, in accordance with Article 16 of the Housing Code of the Russian Federation, residential premises, the necessary characteristic of which is their more functional purpose - permanent residence, include
Apartments, like hotels, holiday homes, sanatoriums and other accommodation facilities, are used for the temporary stay of citizens.
There are many disadvantages to this type of housing. Let's list it.
Experts are unanimous in their opinion: qualitatively speaking, apartments as a real estate segment have much more disadvantages than advantages. However, we list the advantages that this type of real estate has:
To summarize, I would like to note once again that since the status of apartments as a real estate property is extremely precarious, moreover, the term itself is not fixed in any way at the regional or federal level, this type of housing is not suitable for everyone, since it has its own significant advantages, both and cons. Being essentially residential real estate, apartments are regulated by law and taxed on a commercial basis - this is not for everyone.