In the first quarter of 2024, the cost of building a private house in Russia is projected to rise by roughly 20 to 25 percent. This forecast comes from the press service of the construction company Dachny Season, which shared the assessment with socialbites.ca. The claim highlights a strong price momentum across the private housing market, signaling a continued trend of higher expenses for new homes in the near term.
Data released for 2023 indicates that the average cost per square meter in individual housing construction reached about 85 thousand rubles. Based on this base, the expected price per square meter in January through March of the following year translates to approximately 102 to 106 thousand rubles, reflecting a substantial step up from the prior year. The figures illustrate how market dynamics have shifted, with materials, labor, and logistics all contributing to higher overall project costs.
Several factors explain the cost trajectory. The press service notes that the technologies employed in construction have a meaningful impact on final pricing. At the start of 2023, widespread use of wood helped reduce real estate costs by about 8.7 percent on average. Meanwhile, houses built with frames saw price reductions of nearly 5 percent, and aerated concrete structures experienced a 3.6 percent decrease. In contrast, brick and stone constructions recorded more than a 10 percent price increase during the year. Looking ahead to 2024, there is an expectation of even sharper price rises across these same construction categories as demand and production pressures persist. [Source: Dachny Season press service]
Nikita Lutovinov, Marketing Director for Dachny Season, commented that if 2023 saw notable price increases primarily driven by metal, concrete, and brick, the trend is likely to extend to all building materials in the coming year. This broader material cost pressure is expected to ripple through the entire supply chain, influencing bids, project planning, and final home prices. [Attribution: Dachny Season press service]
Labor costs are another critical piece of the puzzle. The industry notes a tightening of the skilled workforce, with many construction firms actively seeking workers and reporting longer working hours. This shift has pushed labor rates upward as companies compete for scarce qualified personnel. Additionally, logistics costs have risen, with several periods during the year when the price of transportation surged multiple times. These combined forces—labor scarcity, material price shifts, and heightened logistics expenses—are shaping the overall cost landscape for private housing projects. [Reference: Dachny Season press service]
When these variables are considered together, the press service concludes that the total cost of building a private house could climb by more than 20 percent. The assessment emphasizes how intertwined factors—material mix, labor availability, and supply chain dynamics—can translate into meaningful delta in project budgets. The outlook suggests that if the trend holds, prospective homeowners and builders should anticipate ongoing price volatility and plan for contingencies in project financing and scheduling. [Cited: Dachny Season press service]
In related observations, recent reporting indicates that the cost of apartment renovations in Russia also rose, reflecting broader inflationary pressures within the construction sector. This broader context underscores the ongoing need for careful budgeting, supplier due diligence, and risk assessment when planning any major housing initiative. [Contextual note: industry coverage]