Internet restrictions on mobile devices won't influence rental costs in Nizhny Novgorod
Mobile Internet Restrictions in Nizhny Novgorod Impact Real Estate Market
Mobile internet restrictions implemented in Nizhny Novgorod due to security concerns over Ukrainian drone attacks have caused widespread disruptions in connectivity, affecting daily life and business operations. These restrictions, which can last for extended periods, have led to unpredictable and uneven internet availability within the city.
The impact of these restrictions on residential real estate is significant. Residents face difficulties working remotely or accessing digital services as mobile and broadband internet outages occur unpredictably and can last hours to days. This instability degrades the attractiveness of living in affected areas, as stable internet access is often a key requirement for remote work, online education, entertainment, and communication. The outages can create a feeling of isolation, likened by residents to being "in a cave," reducing overall quality of life.
Similarly, businesses relying on internet connectivity experience interruptions to communications, digital payments, and operational systems including ATMs. Office tenants may reconsider leasing in Nizhny Novgorod or demand rent adjustments due to the operational risks posed by unstable internet. Potential investors and companies could be deterred from establishing or expanding their presence in the region while such shutdowns remain in place.
In summary, the imposed mobile internet restrictions in Nizhny Novgorod have likely suppressed demand and valuations for both residential and office real estate by undermining the technological infrastructure critical for modern living and business activities. This effect ties directly to the ongoing security rationale cited by authorities, which prioritizes defense measures over connectivity.
However, experts believe that the mobile internet restrictions will not significantly affect short-term rentals or office rental rates in Nizhny Novgorod. This is because most short-term rentals and business centers have wired internet, and the riverside part of the city might potentially have issues with calling a taxi due to mobile internet restrictions.
Tatiana Romancheva, the Director of the Nizhny Novgorod Center for Independent Expertise, and Alexei Nikitin, a real estate agent, are both confident that the mobile internet restrictions will not have a significant impact on the real estate market in Nizhny Novgorod, as they are different spheres.
Despite these assurances, the long-term real estate market impact depends on the duration of these restrictions and whether reliable internet service can be restored or alternatives developed.
Finance professionals are closely monitoring the real-estate market in Nizhny Novgorod, as mobile internet restrictions have the potential to impact property valuations and demand. Investors may hesitate to invest in real estate within the city due to concerns about unstable internet connectivity affecting remote work, education, and communication.
Meanwhile, the disruptions to financial transactions and digital services caused by the mobile internet restrictions could negatively affect businesses relying on internet connectivity, potentially deterring new investments in the region.
