The costs of property in Russia allow citizens to purchase a home within 5 years, if they can avoid spending money for food and clothing, and have a place to stay while earning the sufficient sum. In other words, if they don’t spend money on anything else but keep saving everything they earn.
This explains how young people can get married at 22-24 years of age, and have their own apartment that they own outright. Marriage at such a young age may seem odd to westerners, however, Russian people perceive the age of 24 as the right time to start a family. With this view, Russians strive to be in the position of owning a property without a mortgage. They often live with their parents until marriage. Many young couples start their lives at their folk’s home, while saving to but their own place, as opposed to renting.
The majority of Russians own their homes with no mortgage.
Property Prices vs. Salaries
Russians compare prices for homes on the basis of a studio apartment, the cheapest type of property available for purchase. Young couples usually reside in such apartments, which they either own or rent.
A regular-sized studio apartment is around 35-40 square meters (376-430 square feet), KP.ru reported.
To purchase an apartment like this, a Russian citizen receiving an average salary would have to work for 5 years.
The accessibility of property differs by region.
- The most accessible property is in Yamalo-Nenets Autonomus Okrug and Nenets Autonomous Okrug (close to Finland on the Barents Sea), Magadan region (close to Japan on Okhotsk Sea), and Tyumen region (continental Siberia). These regions are located in colder areas, which don’t make life there particularly attractive. 1-month salary would allow to buy over 1 meter (10.7 square feet) of property.
- The least accessible real estate is in Moscow (people there can only purchase 0.39 square meter (4.19 square feet) of a living space with a monthly wage), Primorski region and Nizhny Novgorod region (0.42 square meter, or 4.52 square feet).
However, because of the drop in value of the Russian currency, rouble, for the last 2 years prices became more affordable (8.8% on average). In some regions property prices are now 1/3 to 1/4 more affordable than 2 years ago:
- Bryansk region: 1/3 more affordable
- Vologda region, Perm region: 1/4 more accessible
Interest rates are extremely high in Russia, which makes purchasing a property by borrowing money from banks strenuous.
Sberbank, the main bank by the Russian government, offers yearly mortgage rates from 13% and up, with the initial deposit of 25%. The term of the loan up to 30 years.
How much 1 US Dollar or Euro cost in Russian roubles?
As of 7 Dec. 2015:
- 1 US Dollar = 68 Roubles
- 1 Euro = 74 Roubles
- 1 British Pound = 102 Roubles
- 1 Australian Dollar = 50 Roubles
- 1 Canadian Dollar = 50 Roubles