Apartment prices in Russia grow slower than inflation

In most major Russian cities, the growth of the average cost per square meter of secondary housing since the beginning of the year has been below the official inflation rate, the federal company Etazhi told Izvestia.

"Despite the fact that real estate is still for the majority of Russians a protective asset to preserve savings from inflation, this year for the first time in the last few years the dynamics of growth in the average price of a square meter was below the official inflation. In these conditions "HYIP" investments in real estate without a clear strategy and the right choice of object may not give the desired financial result and even lead to losses", - said the leading analyst of the federal company "Etazhi" Alexander Ivanov.

According to him, if two or three years ago, the purchase of almost any real estate at least saved money from inflation, and with the right approach gave from 15-20% yield, but because of the sharp decline in the availability of mortgage loans, the growth of supply and competition for the buyer to sell a low-liquidity apartment with a good financial result has become problematic.

Only in six cities with a million people in Russia, the average cost per square meter of housing in the secondary market has overtaken the official inflation, which, according to Rosstat, since the beginning of the year is 7.41%. In Nizhny Novgorod, the average price per square meter of ready housing rose by 14%, in Kazan - by 13.9%, in Rostov-on-Don - by 8.4%, in Voronezh - by 8.3%, in Samara - by 8.1% and in Chelyabinsk - by 7.5%. The outsiders are Volgograd and St. Petersburg, where the average cost per square meter in the secondary housing market decreased by 3.8% and 2% respectively. Krasnoyarsk (+5.3%), Yekaterinburg (+5%), Ufa (+4.9%), Novosibirsk (+4.6%), Moscow (+3.8%) and Krasnodar (+3.4%) also showed low growth dynamics.

"In Russia as a whole, the average cost per square meter of finished housing has increased by only 2%, in the medium term, this trend will continue, grow in price will be scarce options of highly liquid objects," - summed up Ivanov.

At the peak or in the peak: where prices for new buildings will go

The gap between the primary and secondary is huge and is in no hurry to shrink yet

Earlier, November 7, it became known that in Moscow for the year the most dynamic growth in the supply of apartments and apartments was observed in the elite and deluxe segments of new buildings (52%).