Housing costs in Russia exceed fair market values by about 150 percent. Stock market expert Kirill Seleznev from Garda Capital says apartment prices lack balance. He defines fair value as what prices would be without government mortgage subsidies affecting the market. A standard one-bedroom apartment measuring 40 square meters should actually cost between 2.6 and 3 million rubles. Two-bedroom units of 50 square meters should range from 3.3 to 3.8 million rubles.
Seleznev explained to Gazeta.Ru that housing prices can be measured against average salaries. Wealthy nations typically see housing costs around seven times the annual salary amount. Large European cities push this ratio to about ten times yearly income. Asian markets often reach 15-20 times annual earnings or higher. Russian housing markets fall somewhere between Europe and Asia, with apartments costing residents approximately 10-12 times their yearly pay.
Seleznev explained to Gazeta.Ru that housing prices can be measured against average salaries. Wealthy nations typically see housing costs around seven times the annual salary amount. Large European cities push this ratio to about ten times yearly income. Asian markets often reach 15-20 times annual earnings or higher. Russian housing markets fall somewhere between Europe and Asia, with apartments costing residents approximately 10-12 times their yearly pay.
