Information about housing construction on the territory of Petrozavodsk Municipality for 9 months of 2010

Housing commissioning

In accordance with the list of dwelling houses planned for commissioning in Petrozavodsk Municipality, the area commissioned should be 91 595,2 sq. meters in 2010, what is by 12,8% less than in 2009.

The total amount of housing commissioned during 9 months of 2010 (including private homes) made 66 069,7 sq. m, what is 72,1% of the plan.

The total area of housing commissioned during 9 months of 2010

Indicator	Value
Plan for the year, sq. m	91 595,2
Actual for 9 months, sq. m	66 069,7
Percentage of the plan fulfilled, %	72,1

Information about provision of land parcels for housing construction

According to the data from SUE RK “State Property Fund of the RK”, 30 land parcels were sold during 9 months of 2010 for housing construction with the total area of 73,6 thousand sq. m for the total sum of 55,1 m RUR.

Cost of houses

The average market cost of one square meter of the total area of housing for calculating the amount of subsidies for all categories of people who are entitled to receiving those subsidies from the federal budget (in accordance with the orders by the Ministry of Regional Development RF) in the Republic of Karelia made 33 850 RUR for the third quarter of 2010.

Average market cost of one meter of the total area of housing (in accordance with the orders by the Ministry of Regional Development RF)

1-4 quarters 2009, RUR	3 quarter 2010, RUR	Increment, %
33 850	33 850	0,0

Among the regions of NWFD, the Republic of Karelia is number 3 in this respect after St. Petersburg (44 300 RUR) and Nenets Autonomous District (39 350 RUR). The average figure for NWFD is 31 523 RUR, and 29 050 RUR for Russia.

The actual market price of one meter is higher than the one identified by the orders of the Ministry of Regional Development RF by 20–30%. The data about the average cost of dwelling on the secondary market is presented in the table.

Average cost of secondary market apartments in the residential areas of Petrozavodsk Municipality as of 01.10.10

Residential area	One room		2 rooms		3 rooms
	Average cost of apartment (m RUR)	Average cost of 1 sq. meter (thou RUR)	Average cost of apartment (m RUR)	Average cost of 1 sq. meter (thou RUR)	Average cost of apartment (m RUR)	Average cost of 1 sq. meter (thou RUR)
Drevlyanka	1691,0	44,1	2300,0	45,8	2633,8	38,5
Kukkovka	1558,9	43,6	2109,1	41,3	2558,2	39,6
Perevalka	1594,0	42,0	1985,0	40,8	2371,7	35,5
Center	1528,3	49,6	2222,8	47,5	3585,0	49,8
Golikovka, Zareka	1506,3	46,0	1744,5	39,9	2418,8	40,0
Pervomajskii, Oktyabrskii	1498,3	44,3	1726,9	39,4	2356,4	39,8
Kluchevaya	1320,0	42,6	1637,1	35,8	1936,7	35,3
Average in the city	1528,1	44,6	1960,8	41,5	2551,5	39,8

* Analysis was made on the grounds of offers from real estate agencies and selection of information about sales of apartments.

Comparing the cost of apartments as of 01.10.10 to the date of 01.01.10., one can establish the average decrease by 3,2%. At the same time, one and two-room apartments grew more expensive by 3,9 and 4,3 percent respectively, and the cost of three-room apartments dropped by 11,4%.

The highest is the cost of a sq. meter in one-room apartments (44,6 thousand RUR), what can be explained by high demand for this type of dwelling. The cost of one sq. m in two-room apartments makes 41,5 thousand RUR, and in three-room apartments it is 39,8 thousand RUR.

Calculating the index of accessibility of dwelling one can make a conclusion that the average family of three persons (two employed adults + a child) has to save money for over three years having no costs at all, i. e. most people cannot afford buying apartments by means of saving money.

Calculations were made according to the following formula:

Accessibility index =	Av. cost of 1 sq. m of dwelling * area of apartment
	Average monthly salary * 2 persons * 12 months

• Average cost of 1 sq. m of dwelling as of 01.10.10.— 42 000 RUR.
• Assumed area of a typical two-room apartment — 42 sq. m.
• Average salary (in large and medium-sized enterprises) — 22 939,4 RUR.

The conclusion can be made on the basis of that situation that mortgage system should be developed. However, high interest rates and the amount of initial payment, as well relatively low income of people prevent most families in need of improving their dwellings from taking mortgages.

According to the data from the State Property Fund of the RK from 01.01.2010 to 01.10.2010, 1 137 mortgages were provided in Petrozavodsk Municipality for purchasing 52,3 thousand sq. m, and 881 loans out of those (77,5%) were for secondary dwellings. The total sum of loans made 1 274,9 m RUR or 65,7% of the total cost of the dwelling purchased. The average interest rate was 12,97% per year (13,36% at the beginning of 2010), average term of the loan was 183,5 months. Most of the borrowers (75,5%) were under 36 years old, and they got 859 loans.

In compliance with the Decree of the Government of the Republic of Karelia of December 28, 2009 No. 300-P, further implementation of the subprogram “Development of mortgage loans in the Republic of Karelia in 2006–2008 and for 2010” was suspended from January 1 to December 31, 2010, i. e. no new people can join during the time specified.

It means that people taking mortgage loans in 2010 in banks and credit organizations will not be compensated for the interest at the expense of the republican budget. Those participants of the subprogram who signed loan agreements and concluded contracts with SUE RK “State Property Fund of the Republic of Karelia” before March 1, 2010 and earlier will be getting compensations on the grounds of the contracts made with the Fund.

A concept of the regional program “Housing” has been approved for 2011–2015, which incorporates subprogram “Development of mortgage loans”. The Ministry of Construction of the RK has developed draft regional program “Housing”, which is planned to be approved before 01.12.2010.

Increase of prices for construction materials

During 9 months of 2010, prices for the following construction materials grew the most:

• metal formwork — by 17,37%;
• expanded clay gravel — by 15,31%;
• glass sheets 4 mm thick — by 14,4%;
• wall concrete panels — by 13,21%. ;
• glass sheet (4 mm) — by 14,38%

Prices for the following construction materials groped the most:

• mineral cotton mats — by 21,68%;
• expanded clay ordinary bricks — 8,9%;
• premised masonry concrete, Ì 100 — by 8,8%;
• reinforces concrete slabs — by 5,17%%.

Prices for construction materials dropped during the 1 st six months of 2010 by 0,87 in average%.