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The pace of construction of private houses could also slow down, while interest in apartments in Soviet-era serial houses could increase.
“The housing market has already seen a sharp rise in prices, fueled by high inflation, rising construction material prices and a shortage of supply. “In the long run, the development of some new projects may be temporarily postponed or” frozen “. .
At the beginning of March, the bank observed a slight decrease in the number of mortgage loan applications, however, it resumed within a few weeks. The long-term impact of the war on the number of transactions in the future is difficult to predict, as the development of the geopolitical situation remains very uncertain.
Given the rapid rise in energy prices, in recent years people have appreciated the benefits of new projects more – energy efficiency, aesthetic environment, Lukashov admits.
Last year, the amount of loans issued by Luminor for the purchase of apartments in new buildings increased by 81%, while for standard-type apartments in Soviet-era buildings – by 47%.
“However, the increase in construction costs may again return interest in apartments in Soviet-era standard houses, especially those in good technical condition and where energy efficiency measures have been implemented – windows have been replaced, the heating system has been insulated. Renovations works increase the value of apartments by about 20-30%, “he knows.
According to the bank, last year the price per square meter of housing has risen by an average of 15%, prices for new projects have risen by as much as a third, construction costs have risen by 10-30%, and bank housing loan rates have fallen by about a tenth.
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