One-room apartment in Minsk costs USD 55 thousand :: Charter'97 :: News

This year’s January unpleasantly surprised Minskovites: apartment prices would not wait for spring to come. In a month and half time since the beginning of this year an average price of one sq. meter has increased by USD 165. It means that on the New Year eve a one-room apartment of 35 sq. meters cost 42.5 thousand dollars and today sellers charge USD 48 thousand for it. And these are the most modest apartments at the outskirts or in ugly- looking buildings. The majority of one-room apartments are offered for USD 1600- 1800 per square meter, thus amounting on average to USD 55 thousand for a “one- roomy”. In Berlin a two-room apartment 15 minutes ride from the center costs USD50 thousand.

Analysts of the real estate market refuse any forecasting

“The housing price hike is nothing else but the psychosis, to say nothing of its consequences, considers head of the ”Real Estate” Belarusian association Mikalai Prastalupau. It started at the end of December. As soon as the gas problems with Russia appeared, the rumors of devaluation, denomination started to appear. The panic exploded. People moved to banks for collecting their money investing them to whatever they could, mostly, to the real estate. It’s one of the price hike reasons. Plus the cement and construction materials prices and delivery costs have also gone up thus increasing total construction costs. According to the Minsk authorities at present one square meter costs USD 990.

For preferential customers half of these expenses are covered from the state budget and those who have nothing else to do but to solve their housing problems independently can only dream of such payment conditions. Starting building an apartment for USD 1200 is good luck.

At the secondary real estate market 90 % of deals are chain-like, i.e. owners of a one-room apartment buy a two-room apartment, owners of a two-rooms apartment buy a three-room apartment, and owners of a three- rooms apartment want to change it for two apartments (one room apartment and two-rooms apartment). Finally a crazy price hike may stop only those who do not have the money for their first one-room flat. You can’t rely on the loan because its sum can cover only half of the “one-roomy”.

How much do apartments cost in Minsk?

(An average price in USD according to Realt.by as of 16.02.2997)
one-room –55200
two-rooms-70900
3-rooms-90000
4-rooms 99 000

What amount can be borrowed from the bank?

If you need to improve your housing conditions but you haven’t queued up for 15 years and there are no other preferences available, you may rely only on yourself and the bank’s loan. Only the present-day salaries won’t allow to borrow the money for buying the flat.

Say, you and your wife have agreed on a cheapest two-rooms apartment of 41 square meters in Syamyonau Street for USD 55 thousand. Your earnings are average or even slightly higher than average. In this case, the bank will lend you maximum 31 thousand dollars for 15 years, in case you do not have children and you have not made any other borrowing.

Even if you have saved the other USD 20 thousand you can face the problems of the loan repayment. Even if in the first year you are allowed to pay only the interest without repaying the principle debt, you will have to pay USD 330 monthly. When the principle debt is added your total monthly payment for the loan will comprise USD 500.

KP in Belarus