Add to favorite
 
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS

Yekaterinburg Citizens Take Out Mortgages to Buy Suburban Property
29.08.2011 15:27
Yekaterinburg Citizens Take Out Mortgages to Buy Suburban Property
Low-rise Houses in Yekaterinburg's Outskirts

The property analysts from Yekaterinburg and Sverdlovsk Region have noted a significant spike in mortgages taken out to buy property outside Yekaterinburg city centre. Whereas at the start of the year 2011 the proportion of mortgages for city apartments and suburban properties was 83% to 17%, by now the balance has shifted to 30% for city apartments and 70% for suburban houses.


      

Most likely, the reason for such dramatic change is a buoyant suburban property development that has centred upon building low-rise houses, and a somewhat aggressive advertising thereof in the local media.


      

This increase in demand seemingly ignores the fact that only 5% of banks in Sverdlovsk region consider land a liquid asset and thus offer mortgages to either buy a house or a piece of land. The minimum of initial payment has to be 30% off the total sum, while the minimal mortgage rate is about 8.5%, provided all types of insurance have been included. If the property is uninsured, the mortgage rate rises to over 11%. Whenever possible, banks also attempt to offer the properties best suited for a resale, should mortgage terms be compromised. These include properties within the easy reach from the city centre, with a full document pack for land ownership and construction, and established utilities connections.


      

According to June 2011 data, to buy a fully built suburban house in Sverdlovsk Region cost 8.5mln RUR, while a semi-built house cost 5.7mln RUR. The favourite areas are Serovsky and Chelyabinsky Tracts and the vicinity of Yekaterinburg. In the case of Serovsky and Chelyabinsky Tracts, future house owners are attracted to waterside properties. People are also more eagerly buying concrete houses, than brick houses, due to the latter's more expensive price.


      

The analysts predict that this increase in demand for suburban property is likely to dictate the more favourable terms of mortgages in the region.


      

SourceInfox.ru, DPBond.ru. Image courtesy of DPBond.


Author: Julia Shuvalova

Tags: Russian business Sverdlovsk Region Yekaterinburg the Urals region  

Next Previous


You might also find interesting:

Technical Recession in the Russian Economy is Predicted
05.08.2019
Blockchain Development Costs in Russia will be Halved
29.01.2020
Russian Online Retailer Launches QR Code Payment
28.11.2019
The Foreign Investors Interest in Russian Assets is Growing Again
28.11.2019
The Decisions of Foreign Courts on Business Cases will Begin to be Executed in Russia
18.07.2019







Comment on our site


RSS   twitter   facebook   submit

Bookmark and Share

search on the map
TAGS:
Alexey Kudrin  Moscow  nuclear power plant  Alexey Navalny  Teacher  Vladivostok airport  Lukhovka  Yuri Norstein  Pavel Tchelitchew  Lokomotiv plane crush  Primorye  Classical Music  travel to Russia  Bashneft  Garri Bardin  Mercedes-Benz Fashion Week Russia  Kamyshin  Gazprom  Russian Cinema  Hermitage Museum  Russian tourism  Krymsk flood  transfer from Russian airports  Global Competitiveness Report  technology  Un-Convention Hub  Russian scientists  New Films  Russian regions  Russian Architecture  Moscow Zoo  Stavropol Territory  Russian Museums   Caviar  odd news  St. Petersburg  Russian Rock  Exhibitions in Moscow  Mike Naumenko  Pavel Sukhoy  Frantz Joseph Land  Festivals in Moscow  Monuments  Pavel Krusanov  Russian Composers  Digital Medicines  Russian business  Moscow Architecture  Saint Petersburg  Sculpture 


Travel Blogs
Top Traveling Sites