It will be 40% more expensive. What's Happening in the Home Construction Market?

The construction of private houses in the Kaliningrad region will rise in price by 40% against the backdrop of rising prices for building materials, a shortage of cement, problems with logistics and a decrease in demand from buyers. At the same time, some companies have recently recorded a revival in the country house market after a two-month lull. They attribute this to the approach of the season and the rollback of the cost of some building materials "pegged" to the DOLLAR.

RBC Kaliningrad talked about the situation in the industry with the owners of private residential real estate construction companies.

Dmitry Beloglazov, owner of Kaiser-Kraft:

“Nothing matters. This is in short. Absolute silence - no design, no construction. People call, find out how much construction costs now, ask the price. This has been the case since February 24th.

For the active construction of houses, cement is needed. Scarcity and the cost of materials will prevent a surge in construction. Materials jumped in price anywhere from 25% to 70% per unit. Now it's like 2014. But it is unlikely that the situation will improve in the next eight months.”

Representative of Canadian Homes:

“Everything has gone up in value. If something is cheaper, then not by much. There are orders, there are a lot of calls. But the implementation has dropped a lot, even compared to what it was a few months ago.

We have our own production and the sanctions did not affect us. “Canadian houses” does not mean that we bring them from another continent. We took Canadian technology as a basis, adapted it to our conditions, we have our own production of SIP panels (a building material arranged according to the principle of a three-layer sandwich - approx. RBC Kaliningrad).

Now banks are lowering interest rates, so we receive a lot of requests through them for mortgage-backed construction.

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Andrey Abramov, HEAD of BaltHolding:

“The last couple of weeks there have been calls, we feel a revival in the market. Prices are rising for building materials. And to raise the price of building a house is not a whim, but a necessity. Even considering that with the strengthening of the ruble, some materials have fallen in price, the house will be 40 percent more expensive than last year.

Problem with cement. And yet the regulator does not work out about the pricing of sawn timber, because they are overpriced unreasonably, and the quality is very low. But, most importantly, we depend heavily on logistics. We have noticed a strong decline since the end of February.

According to the concluded contracts, we continued to work, although some put the projects on pause, because there was a jump in the dollar. Now the dollar "went" down, and we see a backlash - people are interested. Apparently, they took the money and are now afraid that it will completely depreciate and, I believe, they are thinking where to invest it. Here, some want to invest in suburban construction.

Kirill Pramuzov, head of KarkasDom39:

“We have a lot of calls, a lot of applications. We feel the rise in demand for the construction of country houses. Apparently, the season has begun, plus there are a lot of visitors.

Building materials have gone up in price. But now, with the strengthening of the ruble, it is clear that some materials, positions are getting cheaper. And the mood of people immediately changes. We have wooden housing construction, and the cost per square meter starts from 35,000 rubles per square meter.”

Earlier, RBC Kaliningrad wrote that realtors noted an increase in transactions for the purchase of suburban areas.