Through the implementation of the primary real estate market of pent-up demand, expand the program of preferential mortgage lending and the inflationary fears of the Russians of prices for new buildings continue to rise slowly. For the month an apartment under construction has risen in most cities. But the abilities of developers to increase the cost limited. Developers have to reckon with a marked decline in the incomes of Russians and the fact that speculative demand will likely not last long.The weighted average cost of primary real estate in Russian cities at the beginning of July amounted to 76.9 thousand rubles. per 1 sq m, an increase of 0.9% from the previous month and 6.3% compared to the same period last year. Such data led analysts CYANOGEN.Analysts of “Avito real Estate” to estimate the average cost of new buildings in the country at 87.2 thousand RUB for 1 sq. m. According to their calculations, the annual increase was 12%. The head of the new “Craigslist real Estate” Dmitry Alekseev notes that the increase in prices comes amid growing demand, which is now 32.6% higher than in June. “The market plays a pent-up demand”,— says the expert.The most severe she was in Samara, where the primary estate has risen from 4,4% to 42.4 thousand rubles. per 1 sq. m. In the second place, Perm, the price growth in the city is estimated at 3.4%, to 63.4 thousand RUB for 1 sq. m. Decrease by more than 1% showed the markets of Ufa, Voronezh and Novosibirsk. The first city took the lead: for the month of new buildings in Ufa fell by 3.3%, to 72.8 thousand rubles. per 1 sq. m. Analysts of “Avito real Estate” also draw attention to the decline in prices in Volgograd: a month of new buildings fell by 1.4%, to 49.8 thousand RUB for 1 sq. m In Moscow, according to calculations CYANOGEN, apartments on the primary market for the month rose by 1% to 205,2 thousand RUB for 1 sq. m. Relative to similar period of last year change amounted to 9.6%.In St. Petersburg, according to “Avito real Estate”, the prices for new buildings for the month remained almost unchanged and now amount to 120 thousand rubles. per 1 sq. m. However, annual price growth in the city were more pronounced than in the capital, reaching 16.9 percent.Source: CYANOGEN/head of the analytical center CYANOGEN Alexey Popov expects that in July, the upward trend in prices will continue due to the increase in the supply volume under the program of preferential mortgage lending with interest rate of 6.5% with a minimum down payment of 20%. The limit of cost of apartments for the regions in June was increased from 3 million to 6 million RUB. against this background, according to the calculations of Mr. Popov, the share of apartments which fall under the program in Kazan has increased from 32% to 86%, in Voronezh — from 60% to 96% and in the whole country — from 63% to 89%. The expert is confident that it will attract the segment of new buildings additional demand.While the gMr. Khusainov does not expect that developers will significantly raise prices: the majority of market participants realize that a sharp increase in demand is temporary. Against this background, the developers prefer to keep the prices, hoping to sell more apartments.Mr. Popov agrees that the primary housing market is still affected by counteracting factors. To keep the prices developers promotes reduction of incomes of the population: according to official data of Rosstat, with the beginning of the crisis remained without work for more than 1 million Russians, and most preserved work of potential buyers now there is no financial assurance necessary for a mortgage loan.In addition, competition for new buildings after reducing the Central Bank’s key rate provides secondary market: estimated CYANOGEN, in the majority of regions, about 70% of transactions takes place with the finished apartments. One of the reasons for this difference — a significant proportion of the proposals violated terms of the input.Alexandra Mertsalova
