If you plan to live in Russia or at least stay long term this information about housing prices might be useful. In many regions of the country, an increase in the cost provoked a shortage of supply but there is an oversupply of projects in the Russian capital, which on the contrary, holds back prices.
In the third quarter of 2018, the cost of housing in Russia increased by 3.2% compared with the same period in 2017. According to this indicator, the country ranked 38th out of 57 countries of the world. For comparison, in September 2017, Russia was on the 24th line of the rating with an annual price increase of 5.8%. Such data is reported by the Global House Price Index (GHPI) study of the international consulting company Knight Frank.
The situation on the Moscow real estate market is very different from the situation in Russia as a whole. Despite the high volume of demand, a significant increase in prices in the capital is constrained by a significant amount of new supply, which exceeds demand. In other regions of Russia, an increase in demand due to lower mortgage rates has entailed an increase in prices, since in many regions there is a shortage of supply.
The ranking is headed by Hong Kong and Malta, where housing prices for the year increased by 15.7%. They are followed by Slovenia (+ 13.4%), Lithuania (+ 11.5%) and Hungary (+ 10.5%). On average, the cost of residential real estate in 57 countries increased by 4.9% per year. In Central and Eastern Europe, prices rose by an average of 7.6% over the year, while in Western Europe only by 4.3%, the press release says.
The Global House Price Index Knight Frank has been produced since 2006 and allows tracking and comparing the price dynamics of housing markets in the national currency of the countries in question. The index is calculated quarterly based on official state statistics and data from the Central Bank.
In the second quarter of 2018, Russia ranked 46th. Analysts noted that the rise in housing prices in the whole country is constrained by a factor of the decline in real incomes of the population.
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