Russians warned of rising house prices in major cities

Head of the Tver District of Moscow Yakubovich: housing prices in large cities will continue to rise

Housing prices in large cities of Russia will continue to grow, and affordability will fall, warned the head of the Tver District of Moscow Yakov Yakubovich in his blog on the Ekho Moskvy website. In his opinion, prices in some areas are already growing at a “cosmic pace”.

The trend is clearly visible on the example of the Central Administrative District of the capital, Yakubovich notes. Nevertheless, population growth is observed every year in the center of Moscow, which means that the well-being of the average city dweller is growing. However, this situation is not observed in all regions of Russia.

If you do not take into account Moscow, the problem of housing affordability is now seriously aggravated in the country. The share of Russians able to buy an apartment without a mortgage is constantly falling due to declining incomes and rising real estate prices. According to Yakubovich, the key performance indicators of governors and the state program to improve housing affordability have not yet proven their effectiveness.

The head of the Tverskoy Moscow Region quotes a study by the Institute of Urban Economics, according to which the trend of growth in housing affordability in large cities, observed since 2010 , changed in 2020. At that time, housing prices rose sharply in agglomerations, while household incomes declined. In 2021, these factors further reduced the availability of real estate.

At the same time, according to Yakubovich, the country's authorities are actively developing megacities, so the attractiveness of housing in them is growing. Russian agglomerations still have great potential for development, so “the housing market is still far from overheating.” However, over time, this trend will inevitably lead to an excess of supply, the head of the Tver district of the capital is sure.

Moscow's districts with the cheapest “square meter” of housing in new buildings have recently become known. As of October, the top 3 included Lianozovo (175 thousand rubles per square meter), Vostochnoye Biryulyovo (178.8 thousand rubles) and Beskudnikovo (182.3 thousand rubles).



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