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.
, Image courtesy of DPBond.

Author: Julia Shuvalova

Tags: Russian business Sverdlovsk Region Yekaterinburg the Urals region  

Next Previous

You might also find interesting:

The Share of Non-cash Payment in Russia Reached 50%
1 - the Most Popular Russian Franchise
The Share of High-tech Industries in the Russian Economy Fell Down in 2018
The Russian Direct Investment Fund will Invest in Artificial Intelligence
Pavel Durov Plans to Liquidate Telegram Messenger LLP

Comment on our site

RSS   twitter   facebook   submit

Bookmark and Share

search on the map
Russian tourism  Sberbank  St. Petersburg  Nizhny Novgorod  Central Bank  Classical Music  Pereslavl-Zalessky   FIFA Russia 2018  R&D  Russian sportswomen  #S7selfie  Exhibitions in Moscow  Russian catering industry  environment  Mercedes-Benz Fashion Week Russia  Moscow  Russian business  Biometric Passport  Zombie Parade  Gold Eagle Award  Bolshoe Toko  Kazan Railway Station  Pussy Riot  travel to Russia  Kolomenskoye  Tyumen  Britain  Murmansk  Russian budget  Festivals in Moscow  Russian Rock Music  Romanovs  Russian Cinema  Pobeda  experiment  Tourist Information Center  Must See Places  Tula Region  St. Petersburg Museums  "2-in-1" Film Festival   FIFA world cup 2018 tickets  Russian regions  Steve Jobs  protest actions  Tver region  Fyodor Emelianenko  Rosprodset  Grushhinsky Festival  Transoprtation  Vakhtangov Theater 

Travel Blogs
Top Traveling Sites