Monday , October 14 2019
Home / economy / Housing in Russia has risen significantly

Housing in Russia has risen significantly

Жилье в России существенно подорожало

Housing prices on the Russian primary market rebounded over the year by 10%, and apartments in new buildings, which are on sale from mid-July, went up by early August, an average of 5.4%.

“In the last six years on the market there is a steady upward price trend,” — analysts of the CYAN, excerpts from the study which leads Lenta.ru.

Experts believe that such dynamics are related in part to objective factors (increase in value added tax from 18% to 20% since the beginning of this year, the growth of contributions to the compensation Fund, the need of accreditation in the banks), and partly “information campaign aimed at stimulating demand.”

Meanwhile, earlier the President of Fund “Institute for urban Economics” Hope Kosareva and Executive Director of the Fund Tatyana Polidi came to the conclusion that housing in Russia is available for less than half of Russian families.

See also:  Putin said about the "inevitability" of rapprochement of Russia and Ukraine

At the same time, they said, theoretically, to afford an apartment are families with an income of 30 thousand roubles on the person (their costs an average of about 17 thousand rubles per person). However, after payments on the loan of money on the life they have practically no will remain, pay attention to the authors of the article, even with lower rates of mortgage.

Meanwhile, experts of the Bank of Russia allow for the possibility that housing prices and construction output could fall sharply. As reminded analysts in mid-July, the national project “Housing and the urban environment” implies an increase in the annual volume of housing construction up to a record high of 120 million square meters by 2024 (plus 30% by 2018). However, experts stress that “the implementation of such ambitious plans may face a number of restrictions on the supply side of new housing and the demand side”.

See also:  Emotional support: Syria humanitarian aid arrived from Russia

In a research note regulator noted that “the entire current volume of the potential demand for housing purchase in the primary market with a mortgage at market rates while achieving the targets of the national project can be satisfied within 7-9 years.”

Check Also

Russia strangling the credit noose

In 2019, the real incomes of Russians will continue to fall, despite rising wages. In …

Leave a Reply

Your email address will not be published. Required fields are marked *