Low availability of hypothec credits badly influences upon demand for housing in Bashkiria

Rasul Hamidullin

“The present situation in the building market both in the country and the Republic, in particular, from the point of view of its availability for population, doesn’t meet the real needs of the market” – the first deputy chairman of the state building and architecture committee RB Ramil Khalimov has stated at the last IV congress of builders in Ufa – “At present time only very narrow circle of families with the incomes higher than the average can afford to acquire housing”.

Ramil Khalimov has called low availability of long-term hypothec credits and high level of risks and expenses in this market as the main reasons of low demand for housing. In order to solve this problem he suggested that a multi-level system of alternative crediting for population should be developed in Bashkiria. This system should include both the traditional hypothec as well as various kinds of social hypothec, accumulative schemes and building saving-banks.

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