The Ministry of Construction raised the standard cost of housing in Russia by 27 percent

For the first time, the price of a “square” of residential real estate was calculated using a new method. In Moscow, the figure will increase by 98 percent, to 265.8 thousand rubles.

In the first half of 2022, the standard cost of 1 sq. m of residential real estate in Russia is planned to be set at 70.5 thousand rubles. Compared to the second half of 2021, the indicator will grow by 27 percent, or almost 15 thousand rubles. The corresponding draft order of the Ministry of Construction of Russia is posted on the official portal of legal information.

The standard cost of housing is used to calculate the amount of social payments from the budget for the purchase or construction of housing to beneficiaries and displaced persons from the emergency fund.

The ministry also established the standard cost of a "square" for the regions of Russia for the first half of the year. These indicators are used for housing payments from local budgets.

In Moscow, the indicator will increase by 98 percent, to 265.8 thousand rubles, in the Moscow region - by 45 percent, to 108.4 thousand rubles, in St. Petersburg - by 74 percent, to 162.8 thousand rubles. ...

According to the new method, the standard cost of 1 sq. m is calculated taking into account the average price of a "square" in the primary and secondary housing markets. The exception is the Far Eastern Federal District, where the indicator is set without taking into account prices on the secondary market.

The Ministry of Construction said earlier that the current calculation method is at odds with the market value of housing. Previously, the average market value of 1 sq. m of housing was calculated on the basis of data on the average cost of construction, the average price of a "square" in the primary and secondary markets, the average cost of 1 sq. m. m, purchased under the state program "Provision of affordable and comfortable housing and utilities for citizens of Russia", as well as taking into account the deflator index, which shows how many times the price level in the current year is higher than the price level of last year.

Source: RBC.