The Bank of Russia is recording a decline in the price of primary housing in some regions of the country, but the difference with the cost of secondary housing remains significant. Central Bank Governor Elvira Nabiullina announced this at a press conference.
“In almost a third of the regions, we see that transaction prices in the primary housing market have fallen. This is already an indicator. It is clear that the difference between prices in the primary and secondary markets remains high. And this will gradually disappear,” Nabiullina said.
According to the head of the regulator, the price adjustment in the housing market will be gradual, rapid changes should not be expected. Nabiullina emphasized that the long-term concessional mortgage program has become one of the factors of the rapid increase in housing prices.
“Balanced growth of mortgages should lead to an increase in housing affordability, not in the affordability of a mortgage through the interest rate, but in the affordability of housing – that’s the main thing,” the central bank governor said.
Nabiullina also noted that the financial situation of developers currently remains stable, thanks to the “cushion” created by the positive conditions in previous years.
Before that it was known that the secondary housing market in Russia will open in August 2024. showed higher rates of price increases compared to new buildings. In the secondary market, the average cost per square meter increased by 0.7% to RUB 116.1 thousand, while in the primary market the increase was only 0.6%. According to experts, the removal of preferential mortgages for new buildings contributed to this difference in price dynamics.
Apartments in the resorts of the Krasnodar Territory before became more expensive .
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.