New housing in Russia exceeded the cost of renovated apartments by 19%

Apartments in buildings under construction in Russian megacities turned out to be more expensive than those ready to be renovated by an average of 19%. This was reported to Izvestia on August 10 by the federal company Floors.

"A long period of significant difference in the rates on market loans for ready-made housing and preferential loans for those under construction has created a situation in the market when ready-made housing has become cheaper than under construction, and significantly. This, on the one hand, creates risks for the construction industry, when, with lower mortgage rates, buyers massively reorient themselves to the secondary market, on the other hand, it now complicates the process of improving housing conditions for those who plan to change their homes to apartments under construction," explained Alexander Ivanov, a leading analyst at the federal company Floors..

Of all the Russian megacities, according to the expert, in Moscow and St. Petersburg, due to limited limits on preferential mortgage programs and a large share of apartments on the secondary market in more expensive central areas, the average price is 1 sq. m. The cost of primary housing is cheaper than in the secondary market by 8.9% and 3%, respectively. In other major cities of Russia, 1 sq. m. m in new buildings turned out to be significantly more expensive than in the secondary market.

According to estimates by analysts of the federal company "Floors", the top ten leaders in terms of the difference between the average price per square meter of primary and secondary housing among Russian megacities include Perm, where new buildings are more expensive by 38.5%, Ufa (34%), Omsk (33.5%), Nizhny Novgorod (31.3%), Chelyabinsk (27.9%) Voronezh (26.2%), Krasnodar (25.4%), Yekaterinburg (17.3%), Novosibirsk (13.1%) and Kazan — with a difference of 10.9%. The most insignificant difference was noted in Rostov-on-Don (2.4%).

"For the difference between the average price of 1 sq. m. new buildings and the secondary market are also influenced by the supply structure, the sufficiency of new construction in the region, the level of solvency of the main home buyers, the location features of urban development zones and the share of new housing in the secondary market. Nevertheless, the situation when apartments under construction are more expensive than finished ones is illogical for the market, and as the difference in mortgage rates decreases, it will change," Ivanov summed up.

Built in rows: 25 million families have improved their living conditions in seven years

Putin was informed about the pace of construction in the Russian regions and told about new infrastructure facilities.

Earlier, on August 6, analysts at the Yandex Real Estate service said that in July, prices on the secondary housing market in the million-plus cities stagnated amid rising demand. At the same time, the volume of supply in the market of these cities decreased slightly over the month — by 1%. It is noted that the price dynamics close to stagnation (fluctuations from -0.5 to +0.5%) in the secondary market was recorded in seven of the 16 Russian megacities.

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