This Real Estate Market is Like No Other!
Originally Posted on Marketmadhouse on 27th Oct, 2020
An Expert from Royal Oak Developers Talks About the Booming Atlanta Housing Market
“Atlanta’s booming real estate market is hotter than ever,” says Sergey Krayev, managing partner at luxury home builder Royal Oak Developers.
Royal Oak has several luxury residential projects under development in Metro Atlanta. Recently, the company began an expansion into multifamily, large scale subdivisions, and townhome projects from single home projects. The move is justified by rapidly growing demands from buyers.
“I believe that the pandemic has increased migration to Atlanta substantially, Krayev says. “Coronavirus expedited a lot of movement from other metro areas, such as New York and California. We know that even pre-COVID around 500 people were moving to Atlanta daily,” Krayev says.
This year’s stats may not yet be readily available, but some Atlanta local sources say that it is the seller’smarket now. They cite low interest rates and a relatively low number of homes for sale as key reasons for the trend.
When asked about other reasons why people move to Atlanta, Krayev has a simple answer. “Atlanta is a great market for Millennials. It’s a major metro area with a great and relatively low cost of living. Atlanta is a major transportation hub, it has a lot of big companies based here. Atlanta also has a strong landscape for startups.”
“We try to do things in a unique way”
What sets Royal Oak Developers apart from other developers in Atlanta is that they try to do things in a unique way, Krayev explains. To make homes unique, Royal Oak adds special touches such as one-of-a-kind floor plans. “Every property is unique to us,” Sergey says.
The biggest project for him right now is Moreland Walk, a 30-unit condominium development that was started in June. It is a larger community project in the historic East Atlanta Village area. Moreland Walk is close to Downtown Atlanta and it is within walking distance of bars and restaurants. It is just a two-minute drive from Grant Park.
Moreland Walk’s condos offer two floor plans with “German kitchens” with high-end finishes. Another Royal Oak project — Boulevard — features rooftop amenities with sky views of Downtown Atlanta and open floor plans.
Rush to the Suburbs and East Atlanta
“We’re also seeing massive movement into the suburbs,” Krayev says of Atlanta’s real estate market. “There is a 30% increase in interest in suburban properties.” The reason for this trend is that families are seeking larger suburban homes for working from home.
“We’re also seeing massive movement into the suburbs,” Krayev says of Atlanta’s real estate market. “There is a 30% increase in interest in suburban properties.” The reason for this trend is that families are seeking larger suburban homes for working from home.
Atlanta Real Estate outlook for the near future
Atlanta real estate prices will keep appreciating in 2020 and 2021, Krayev predicts. He thinks rising building material prices could affect the market alongside the higher demand.
“If you look at the cost of supplies,” Krayev notes. “Lumber for example has gone up two to three times in price. Other items, such as appliances and HVAC… there are massive shortages because some factories were forced to shut down.”
The shortage has reduced inventory and increased demand, which will create a positive effect for the real estate appreciation, the expert states. Krayev estimates that Atlanta homes are appreciating at rates of 2% to 3% per quarter on average.
Low cost of entry and high appreciation is how Atlanta’s real estate market can be described, in short. The average Atlanta residential investment property sits at around $126,000. In contrast, the national average is $152,000.
Royal Oak’s focus is Atlanta
“Atlanta’s going to be our core focus,” Krayev says of Royal Oak and potential plans to expand geographically. “We are from here; we understand this market. It is unique. Many people come to Atlanta from different places. It’s an amazing mix of cultures.”
Krayev says that, while he is testing the multifamily home market, his main focus is single-family luxury homes. Just recently, Royal Oak put on the market a 5,000 square foot ultra-modern home with a basement in the Sandy Springs/Buckhead area.
That property, with a lot of big windows, ultra-high ceilings, and modern appeal is set to attract newcomers from California. Krayev estimates this home, located at 318 Pine Forest Road, to sell for around $2 million.
“We’re also looking at larger land acquisitions,” Sergey said of Royal Oak’s future plans. Krayev and his partner want to develop 40, 50, and 60-home subdivisions in Atlanta’s suburbs.
“Hopefully we could break ground before the end of the year,” he adds.
An entrepreneur at heart
Sergey Krayev was born in the former Soviet Union and raised in Upstate New York. He is a graduate of DeVry University and attended Stanford Advanced Management Program.
“I moved to Atlanta in 1995 from Upstate New York,” he says. “I’ve seen massive transformation of the city since then.”
Before entering the residential development market, Krayev worked with AT&T, Kimberly-Clark, Mizuno, Sage, etc. He is also serving as the managing director of the Partnership Network, an Atlanta area digital marketing organization.
“In technology you cannot always see tangible fruits of your labor,” Krayev says of why he switched industries. “I always loved construction space,” Krayev adds. “And I really enjoy the design elements of it.”
