Currently, investing in real estate for investment purposes is hardly advisable, stated Rossiyskaya Gazeta, chief analyst at TeleTrade Mark Goikhman. Housing prices in Russia have grown strongly and rapidly in the past year, but now the main drivers of growth are leaving, he said.
The key drivers of the rise in apartment prices, according to the expert, were low interest rates on mortgages, an overflow of funds from deposits and reasonable prices per square meter. But now “demand is extremely limited by the incomes of the population, which are in no hurry to grow,” said Goikhman.
He predicted another increase in the key rate of the Central Bank on October 22, which will lead to a rapid increase in mortgage rates. In this regard, the analyst advised against buying housing for investment purposes. “A completely losing option is to buy real estate on a mortgage to generate income, and even at current prices,” he stressed. In the coming months, stagnation and even some subsidence of prices in the real estate market is likely, Goikhman predicted.
“A sharp collapse in prices is unlikely, both in the primary and secondary markets. Accordingly, most likely in the future, prices are expected to stagnate (…) with the possibility of their subsidence by 5-10 percent, ”the specialist concluded.
Earlier, the head of the analytical center CIAN Alexei Popov said that prices for secondary housing in Russia have stopped growing, the market is already stagnating. According to the expert, from month to month prices for “secondary housing” do not change, in annual terms, housing has risen in price, but less than in the primary real estate market. Zero price dynamics in the secondary market has been recorded for three and a half months in a row, Popov specified.
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