prof. elena ivankina...(average economy class housing price rr160,000/ sq.m) income groups of...

The Russian Presidential Academy of National Economy and Public Administration

Faculty of Real Estate Management

Prof. Elena IVANKINA

ivankina@rane.ru

www.frem.ane.ru

Basic Socio-Economic Indicators of People’s Living Standards

Index/Date 2000 2001 2002 2006 2008 2009 2011

Cash Earnings per Capita per Month (rubles)

2281,1 3062 3947,2 9947 14863,6 16895,0 20754,9

Real Disposable Income Growth Index ( % to the prior year/ period)

112 108,7 111,1 110,2 103,0 101,9 94,5

Monthly Nominal Wage 2223,4 3240,4 4360,3 10727,7 17290,1 18637,5 22185,4

Source: Russian Statistic Bureau

Basic Macro-Economic Indexes in Russian Federation in 2004-2011

2004 2005 2006 2008 2010 2011

Economically Active Population, mln

73,4 73,8 74,1 73,7 73,92 75,75

Unemployment Rate, %

8,18 7,58 7 6,3 7,5 6,6

GNP per Capita, USD

9254 10250 11852 16743 18891 19970

Consumer Price Index, % end of the period

11,63 10,9 9,6 13,3 8,8 6,1

Source: Russian Statistic Bureau, www.tradingeconomics.com \ world bank

Housing Prices in Russian Big Cities (rubles)

City Average Price per Square Meter (Rubles) Price Growth Rate, %

2000 2007 2008 2012 In 12 Years

Moscow 18 278 133 756 144 600 162500 889

Saint-Petersbourg

9 874 69 711 91 896 92200 933

Novosibirsk 5 413 45 224 63 979 47200 872

Ekaterinburg

6 038 63 601 62 062 55300 915

Nizhniy Novgorod

7 072 38 784 54 741 47400 670

Omsk 3 427 31 823 49 129 34200 998

Kazan’ 5 321 39671 42 339 42200 793

Housing Value Index in Moscow (rubles per sq.m) 1

5

Indices of housing affordability of economy class are commonly used by the world community. There exists a generally accepted

classification of housing markets in terms of housing affordability. Methods of calculation of affordability housing rate require using of an average median values of household incomes.

Housing affordability

Category Affordability index Housing is affordable Up to 3 years

Housing is moderately unaffordable From 3 to 4 years

Acquisition of housing is seriously unaffordable From 4 to 5 years

Housing is severely unaffordable More than 5 years

Calculation of housing affordability in 2012 (average economy class housing price RR160,000/sq.m)

Income groups of

population

Average official salary

Approximate real salary

Official annual salary of both

spouses (2x2x12)

Approximate annual real salary

of both spouses

Affordability of

housing by

Russian standard

Income groups of

population

Official salary Appr. Real salary

1 2 3 4 5 6 7 First

4662 7925 111888 190210 77 45,4

Second 7097 12065 170328 289558 50,7 29,8

Third 9504 16157 229056 387763 37,7 22,3

Fourth 11969 20347 287256 488335 30 17,7

Fifth 14630 24871 351120 596904 24 14,5

Sixth 17635 29980 423240 719508 20 12,0

Seventh 21314 36234 511536 869611 16,8 9,9

Eighth 26471 45001 635088 1080017 13,6 8,0

Ninth 34977 59461 839208 1427062 10 6,1

Tenth 75081 127638 1801980 3063305 4,7 2,8 7

Housing affordability rates in previously-owned housing market in Moscow

2001 2002 2003 2004 2005 2006 2007 2008 2009

Room 2,1 2,3 2,4 2,5 2,4 3,5 3,6 4,7 4,5 Studio 4,2 4,7 4,8 5,0 4,9 6,9 7,3 9,4 9,0

One-bedroom apartment 6,2 7,0 7,2 7,5 7,3 10,4 10,9 14,0 13,6

Two-bedroom apartment 8,3 9,3 9,6 10,0 9,8 13,8 14,6 18,7 18,1

Year 2003 2004 2005 2006 2007 2008 2009

Number of deals, thousands

90,9 86,4 84,2 75,6 77,4 65,1 55,6

Number of registered deals of purchase and sale

8

Housing Prices Maximum Draw Down December 2009

Источник: расчеты автора по данным сертифицированных РГР аналитиков рынка недвижимости

9

Private property of citizens and legal bodies 128.5 mln hectares (7.5 %), Including: private property – 123.3 mln hectares, property of legal bodies – 5.2 mln hectares

,

State land unlimited – 1581.3 mln hectares (92.5%)

Land resources structure in Russia by type of ownership before state-owned land limitation

Total land resources – 1709.8 mln hectares

Available Land Ownership Structure

(Russian Federation, 2010)

Available Land Category Structure (Russian Federation, 2011)

1

Distribution of lands of Moscow by kinds of property, hectares

Total area State

property is not marked

Property of the Russian Federation

Property of the city of Moscow

Private property

108 083,00 99 934,70 5 245,50 2 267,80 635,00

100 % 92,50 % 4,90 % 2,10 % 0,50 %

Rent market, Moscow

Turnover of Moscow rented housing $4 billion/year

Potential taxes for rented apartments RR 12 billion/year

Declared taxes 5% (6 thousand people)

Paid taxes RR 217 million

Loss of the city due to illegal rent of apartments

RR 10 billion/year

Structure of tenure (percentage out of total housing stock) in 27 EU countries