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:

Online Sale of Alcohol will be Legalized
08.08.2019
New Educational Startup Accelerator will be Launched
23.10.2019
Sberbank and Mail.ru Group will Create a Joint Venture
17.08.2019
Russian and China are Launching a Joint Scientific and Technology Innovation Fund
14.06.2019
AliExpress will Sell Goods of Russian Retailers and Manufacturers
25.04.2019







Comment on our site


RSS   twitter   facebook   submit

Bookmark and Share

search on the map
TAGS:
Dmitry Mitrokhin  Russian regions  VKontakte  Visa   Ivan Grozny  Russian Traditions  Mercedes-Benz Fashion Week Russia  St. Petersburg  Russian scientists  Pancakes   Russian oligarchs  International space station  Grigori Aleksandrov  Regional Cuisines  Russian cuisine  Moscow  Multimedia  banned books  Zaraisk   Russian tourism  Mikhail Rudakov  Russian fashion  ESRF  Konstantin Kedrov  Coronary Stent  Myriapods  Lipetsk   Kolomenskoye  Russian Astronauts  Republic of Bashkortostan  Valeriya Guy Germanika  where to buy clothes of Russian designers  Kuzminki  Moscow Metro  Moscow Museums  Russian opposition  Painting  Phytochemistry  Architecture  Lady Gaga  Symbols of Russia  Russian Premier League  Festivals in Moscow  Exhibitions in Moscow  travel to Russia  Russian business  Ervington Investments  Russian records  Russian Cinema  Sarans 


Travel Blogs
Top Traveling Sites