Realnoe Vremya’s analytics: private housing construction in Tatarstan breaks records
Volume of individual housing construction has exceeded the pre-Covid-19 indicators and reached a historical maximum
Private housing construction in Tatarstan is experiencing an unprecedented upswing — the volume of housing commissioning and the number of land purchase and sale transactions are growing, the analytical service of Realnoe Vremya found out. Market participants explain the growth by the echo of the pandemic, the development of technology, and the influence of “cheap mortgages”. However, they predict a decline in this market already in 2023.
In Tatarstan, in August, against the background of a general reduction in residential purchase and sale transactions and mortgages, the number of land purchase and sale transactions increased.
According to Tatarstan Statistics Service, 325,8 thousand square metres of housing were commissioned in August, while within the framework of individual housing construction (IHC) — 290,3 thousand square metres. In general, almost 2.5 million square metres of housing were introduced in the republic for 8 months of 2022, including residential housing — more than 1,7 million square metres. Compared to last August, the volume of residential housing commissioning increased by 59,4. So many private houses have never been commissioned in Tatarstan.
In general, this fits into the all-Russian trend. According to a survey conducted in August, Dom.RF and VTsIOM, about 68% out of 61,8 million Russian families consider an individual house the most preferred type of housing. More than half of Russians living in apartment buildings said they would like to move to an individual house — 19,7 million families.
Residents of million-plus cities are less likely to think about moving to an individual house, but even here the majority of citizens (60%) consider such housing ideal for themselves.
The main reason why citizens cannot afford to buy and build a private house is the lack of money. At the same time, 54% of citizens who want to move into a house would be willing to consider a mortgage for its construction.
The actual issuance of mortgages for residential housing, according to the Dom.RF research, is several times lower than the willingness of people to take out such a mortgage. For example, the share of mortgages on residential housing in the total mortgage issuance did not exceed 5% in 2021-2022. About 8 thousand such loans were issued in the first half of 2022. This is due to the lack of standardisation of the private house construction market, high rates due to high credit risks and operating costs of banks. At the same time, houses themselves have low liquidity as collateral for the bank.
“An increase in the number of banks offering preferential programmes could solve the problem”
Tatarstan