Russia has called for lowering of housing prices

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www.vsyako.netPhoto: Maksim Blinov / RIA Novosti

To reduce the cost of housing in Russia must create conditions to increase the volume of construction. This is impossible without simplification of the regulation of the construction sector, said in an analytical article published by the portal “Indicators of the real estate market” (IRN).

According to analysts, to support the construction industry during the crisis caused by the spread of coronavirus, the government has decided to concentrate on the mortgage. “Lending rates are already approaching the Western level, but cheap mortgage alone will not make housing available at vastly exaggerated prices. It is necessary to create conditions for increasing the volume of construction, which is impossible without ressurectional construction”, — stated in IRN.

Property prices experts call inadequate, specifying the reason for the lack of square meters. In Russia, in their opinion, building small and expensive because of existing bureaucratic barriers. “Elimination of red tape construction will allow developers to reduce project time, increase the amount of housing and reduce the cost of the final product. And most importantly will ensure the growth of competition between projects and developers, which ultimately will create preconditions for reduction of prices” — sums up in IRN.

Earlier in June it became known that at the end of the first quarter of 2020 housing prices in Russia grew by almost five percent compared to the same period of 2019. Despite the positive trend in the whole country, in Moscow the cost of housing in January-March fell by almost six percent annually, analysts estimated.

Video, photo All from Russia.

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