New housing to grow 15% to 30% more expensive, LSR Ural says

13 October 2008 (09:38)

‘We have already increased the prices of some of our buildings by 2%. When our new housing gets commissioned, the price of a square meter will rise by 15% to 30%. Exactly when this can happen will depend on the market situation, but if we don’t go for a price rise, there will simply be no point in starting the construction at all, even though increased prices might naturally lead to deferred demand,’ says LSR-Ural Management Company’s General Director Andrei Bibikov.

‘As far as the housing prices in buildings already under construction are concerned, they haven’t been raised much. The prime cost of the building is already clear, and the developers are fighting for the customers. Then, the price also depends on the current construction stage. There are buildings that have barely been started, their prime cost is not very clear yet, and the investors still need the land allotment to pay off as well as to relocate the dwellers from the old houses – the price of apartments in such dwellings is bound to rise,’ he notes.

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