‘Focus on the apartment’s potential’

A Russian propaganda film explores the ‘unconventional housing market’ in war-ravaged Mariupol

At the end of January, clips from a film about the housing market in Russian-occupied Mariupol began circulating on TikTok and X (formerly Twitter). After the start of Russia’s full-scale invasion of Ukraine, the Russian army held Mariupol under siege for 85 days, all the while relentlessly pummeling the city with missile and air strikes. Mariupol was effectively reduced to rubble, and no one knows how many lives were lost — though some estimates place the number as high as 100,000. As soon as the Russian authorities had captured the city, they set about rebuilding it and erasing any trace of war crimes.

The film, titled “Shocking Prices for Apartments in Mariupol — Millions for Ruins” was released in November on the YouTube channel “Mirnyie” (the plural form of “peaceful” in Russian and the first part of “peaceful inhabitants,” a Russian term used to distinguish non-combatants from military personnel in conflict zones). The Mirnyie project is led by “war correspondent” Regina Orekhova, a journalist from the Russian state news agency RIA Novosti. In 2022, she received a special award from the Russian Union of Journalists for “courage in fulfilling journalistic duty.”

The Mirnyie project, as one might surmise from its name, explores the lives of ordinary people in the conflict zone. “These are the stories of people who found themselves caught in the crossfire — some left, while others stayed. [We share] their experiences, how they survive, and what they think about,” reads the description. Judging by the channel, Orekhova primarily works in Mariupol. Previous reports of hers cover topics such as Azovstal’s underground tunnels, the sea port, city maternity hospitals, and the drama theater, which was destroyed by a Russian airstrike while an estimated 1,000 civilians were sheltering there.

In the introduction to the half-hour film, Orekhova promises to answer the following questions: “How do you buy an apartment in Mariupol? Is it more profitable to invest in ‘ruins’ that you can resell once renovated? How do you rent commercial space for a business here and how much does it cost? What kinds of apartments are for sale and what determines the price?” Orekhova explains that in Mariupol, there are “damaged buildings” as well as “brand new and renovated ones.” “The real estate market is very unconventional. We’ve studied it in detail and we’ll tell you all about it,” she promises.

Orekhova speaks with three local realtors who show her properties for sale in different parts of the city. As it turns out, these are mostly half-destroyed apartments, hastily abandoned by residents who left all their personal belongings behind as they fled. However, even such properties, according to the realtors, are in high demand. In some cases, actual ruins, where just parts of the walls survived the bombings, are for sale. However, Russian construction companies will restore these buildings later for free, which significantly increases prices. There’s also the rare property untouched by war, or newly renovated apartments in restored buildings. Prices for these range from four to six million rubles (about $50,000-$66,000). Apartments in historic Stalin-era buildings in the center of Mariupol with surviving inner courtyards (i.e., enclosed parking), renovated entrances, and sea views are considered premium housing.

The film doesn’t explain why or, more importantly, by whom all the housing in Mariupol was destroyed. Realtors talk evasively about “all those events” or “military actions.” Orekhova asks how many real estate agencies are currently operating in Mariupol. “Well, there aren’t many surviving citizens per square meter, you could say, but they exist, of course,” a realtor answers.

Showing a damaged three-room apartment in the center of Mariupol, real estate agent Natalia remarks that “one shouldn’t focus on the consequences of what happened to the apartment but on the apartment’s potential.” There’s no electricity, the ceiling is leaking, and personal belongings, including toys and a highchair, lie strewn about — but the windows have been replaced. Natalia points out the “magnificent view” from the balcony. “These buildings have survived more than one war and, as you can see, are still standing,” Natalia says encouragingly. According to her, it would be too painful for the previous owners to come back and see their home like this, which is why they’re looking to sell the apartment in its current condition.

The realtors say that apartments are mostly bought by newcomers “from big Russia” and bemoan that locals can’t afford newly constructed housing. According to them, Russian authorities introduced a special two percent mortgage rate for people from the self-proclaimed “Donetsk People’s Republic” and “Luhansk People’s Republic” who have Russian citizenship. But locals can’t get approved because most aren’t officially employed — there are no jobs with decent salaries in Mariupol.

Luisa, the head of a real estate management company, explains that it’s virtually impossible for Mariupol residents to get an apartment without Russia’s help. She says they “can’t afford to buy back their old homes in Mariupol or to purchase new ones.” When new construction is put up where their destroyed homes used to be, the mortgage payments are out of reach. Luisa recalls how an apartment building in the center, leveled in the bombings, was cleared away to make room for new construction. Residents were offered housing somewhere on the outskirts as compensation, but they weren’t able to buy apartments in the new building being built on their property, even though they’re legally registered at the address.

Tatiana, another realtor, thinks everything in Mariupol is “getting back on track.” She says people are returning, “even those who didn’t plan to.” “The demand [for apartments] is very high, much higher than the supply,” Tatiana explains. “If an apartment is in poor condition but at a good price, it goes quickly. The interested buyers are mainly newcomers. People from Siberia are also eyeing our seaside breeze.”

Tatiana tells Orekhova that everything is “looking up” for the city:

Mariupol has never experienced such rapid growth. The city is developing before our eyes. It’s happening in such a way that even we don’t know where things will improve tomorrow, where slums will turn into upscale neighborhoods. Because our sky is blue. When I say this, everyone smiles, actually. But before, our sky used to be gray or brown, never blue. And now life is getting better; every cloud has a silver lining. You just don’t want to remember the military operations; you go numb. But when you see what’s happening in Mariupol — everything will be fine, everything will work out.