Page 107 - RusRPTOct21

9.1.4 Construction & Real estate sector news
The real estate market continues to hum. Moscow set an absolute record for mortgage deals for Jan.-Aug. this year – 82,600. That's a 44% increase over the same period in 2020 and a 64% increase over the same period in 2019. A comparison of deals by month shows a slowdown in August vs. July,but not one that saps the momentum out of sales in Moscow yet.
Apparently cost inflation for construction materials is finally slowing down in the Volga region. That's not seen evenly across the regions and the price crunch is encouraging another policy response to control costs – strengthening punishments for sales of uncertified construction materials that are considered "falsified industrial production." About 1/4 of the nation's used construction materials are reportedly falsified according to a report from MinStroi. Construction material costs have more than doubled since the pandemic began.
The rate of dealmaking in Moscow suggests that rich(er) Russians and families with savings are still looking to buy both for quality of life and as a store of value.
With the progressive reinstatement of offline training and employment and the introduction of new tenant categories, the liquid offers are gradually being washed out on the rental market in the long term. The average price dynamics remains limited,but retailers report that in certain instances, the owners increase them considerably. Following market stabilisation and growth in supply in November and December, Kommersant said, the conditions for reassessed contracts maye revalued. The average long-term rent cost in September of a one-room apartment was 16.8 thousand rubles, two-room – 22.9 thousand rubles in Russia’s 16-largest cities. CIAN analysts provide such data . The average costs rosey 0.8% compared to August, according to their estimates.
Residents of Moscow from January to August 2021 signed 82.7 thousand mortgage agreements – an absolute record in the history of the capital’s real estate market and 44% more than the results of the same period last year, the press service of the Moscow department of Rosreestr reported. Moscow has traditionally been the leader in the Russian mortgage market. Residents of Moscowy mid-September took 26.7% of the total amount of mortgage loans under the state program.y September 16, 2021, 495.8bn rubles of mortgage loans were issued in the capital, an increase of 84% more compared to the beginning of this year.
According to TASS, the average cost per square meter of flats in Moscow grew by 17% in August 2021 compared to the previous year, while in St. Petersburg it increased by 34%, according to Alexei Popov, the chairman of
107 RUSSIA Country Report October 2021 www.intellinews.com