Prices for residential property in Russia significantly increased during the first quarter of

the average residential property prices in Russia have increased in the I quarter of this year by 7.1% yoy, while the average in the world (studied 56 countries) — only 4.4%. These data are presented in the review of the international consulting company Knight Frank.

Commenting on the statistics, the Director of Department of consulting and Analytics Knight Frank Olga Shirokova indicated that “data were collected at the end of March 2020, when the pandemic was gaining momentum in Russia”. “In April and may decreased significantly the number of trades in connection with limitations of Federal registration service, and because of the introduction of the isolation and travel restrictions. Thus was formed and continues to form the pent-up demand”, — the expert believes.

we will Remind, last week it became known that the market in Russia collapsed last month almost twice — Rosreestr registered in the country only 35,5 thousand contracts of a joint construction (DDU) vs 66.3 thousand POS in the same period last year. Sales of secondary habitation in Russia has decreased in may by 22% yoy to 182.7 thousand transactions, the information office.

Meanwhile, housing prices in new buildings in some cities were growing, including in the period introduced in April—may of mode isolation. This June 19 at the conference, said senior Vice-President of the savings Bank Vladimir Sitnov.

“If we talk in such terms as housing prices, we statistically observe that in the major cities since the beginning of the year and in the period of the pandemic rising prices, with some exceptions, continued”, — said a top Manager.

the Russian construction sector is experiencing difficulties because of the crisis caused by the pandemic coronavirus infection COVID-19, and at the end of this year may be short of more than 400 thousand people, and the average monthly salary in the companiesthe developers will decline by almost 8% to 38,7 thousand roubles. This forecast issued by experts of the Center for strategic research (CSR).

These calculations, as indicated in the RBC document, based on official data of Rosstat, the Federal registration service, Federal tax service, the SPARK database, as well as economic expectations identified during structured interviews with representatives of 150 construction companies. Thus, according to the CSR were taken into account the views of large, medium and small developers.

experts predict a fall of total revenue of all firms in the construction sector in 2020 83.9 billion to 339 billion rubles, and profits could be reduced by 2.8 billion to 15 billion rubles.

moreover, it is not excluded to the CSR, the demand for new buildings will fall by 14% by the end of this year.

According to Rosstat, in the country in may 2020 was introduced 3.5 million square meters of housing, which is 24.4% less than in the same period last year. For the first 5 months of current year in Russia was built to 21.2 million sq m (excluding houses in areas for gardening), which is 12.7% lower than a year earlier.

According to the Ministry, last month was elevated to 325 multifamily houses built of 48.8 thousand new apartments, and from the beginning of the year 2.2 million homes and 290,2 thousand apartments, respectively.

let’s Add that the Russian economy in February—March 2020 was under the powerful impact of two negative factors — the rapid spread of the pandemic coronavirus infection COVID-19 and its deleterious effect on the global economy and collapse in oil prices. Against this background, the rouble significantly depreciated against the dollar and the Euro. Reacting to the situation, the government and the Bank of Russia adopted several packages of measures to support the economy and citizens.

on 2 June Prime Minister Mikhail Mishustin presented to the President a national plan for the recovery of the Russian economy in 2020-2021 years, saying, the hourreporting that the cost of the plan will be about 5 trillion rubles.

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