Living accommodation plummets in Murmansk

Murmansk real estate suffers a fall in prices. Compared to the end of 2008 when the average prices for one sq. metres were up to 40.000 RUB (8.300 N0K), the prices as for June 2009 went down as low as 32.000 RUB (6.620 NOK) per one sq.metre. The accommodation lost 30-40% in costs, yet some specialists predict further plummet in autumn. Due to the crisis, the mortgage rates and conditions became less welcoming and the demand for accommodation came close to zero.

Meanwhile, Russian Ministry of Regional Development subsidizes the Murmansk region with 6.5 million RUB (1.34 mln NOK) to assist young families in mortgage crediting. Besides, the Murmansk regional budget has 15.5 mln RUB (3.2 mln NOK) particularly for the same purposes: to give young families some money to be used as a down payment of 20-30% of the apartment’s costs. Due to this assistance, 128 families of the Murmansk region managed to improve their accommodation conditions in 2007-2008. 2009 promises to help 50 more young families. Yet, as some can guess this kind of financial assistance may peg the high rates of commercial mortgage crediting.

Source: barentsnova.com