Housing prices in Ufa are lower than before crisis

Within the period between 2002 and 2008 housing prices in Ufa have increased five times, the general director of the realty agency “SAN” Rustem Kamalov reported during his last press-conference. According to him there were times when the prices doubled during one year.

“The crisis burst out in 2008 and housing prices dropped by 40% that time” – he said – “Now the prices are lower than before the crisis but they are still growing”.

Rustem Kamalov has also mentioned that at present time there are no any economic prerequisites for the rise of the housing cost and the growth is explained only by compensation of inflation processes.

In his opinion the demand for housing in all Russian cities is unbalanced. For the last 15 years the preferences of citizens of Ufa were changing several times but at the same time the market had nothing to offer. When the demand for elite dwelling was registered, the offers were absent in the market. Developers began to design and erect elite housing but at the same time the demand was going down. Same happened with the economic-class housing.

“We forecast that in several years the demand for out-of-town housing will go up but it is quite possible that we won’t have enough offers to meet this demand” – Rustem Kamalov said – “For today such housing isn’t yet even designed”.