24 December 2010, Friday, 11:40

Rise of housing prices is expected in 2011

author: Rasul Hamidullin

For today the average cost of one square meter in the primary housing market of Ufa is 42900 rubles and 44400 rubles – in the secondary housing market but in 2011 the analysts of the realty agencies network “The Expert” expect the rise of the housing prices not within the limits of inflation but higher.

The General Director of “The Expert” Elena Andreeva says the demand in high-quality housing exceeds the offer already now, so rather substantial rise of housing prices is quite real at the end of 2011.

“The larger part of this rise will fall on the next winter” – she says – “By the end of the next year the prices in the secondary housing market can reach 48-50 thousand rubles for one square meter but not higher because the 50-thousandth level is considered a sort of a psychological threshold or stopper, which can be overpassed only under very favorable conditions”.

In opinion of Elena Andreeva the housing market faces plenty of various problems now: the quality leaves much to be desired and developers face the shortage of good floor-plan diagrams etc.

“In the nearest future we expect new building projects but now fail to see the desirable number of the flats and desirable variety, so the abuilding housing will be cheaper than the ready-made one. The prices for new housing will grow up rising in 2011. The prime cost of the projects will be higher, since the market demands to use high-quality materials and progressive technologies. The current demand will also allow the developers to set such prices and under other equal conditions we may say about the range of average price for abuilding housing within 45-48 thousand rubles for one square meter in 2011”.

themes: realty, prices