In Irkutsk, the real estate market was discussed. The average price of new housing fell by 4 to 15 percent and is now about 41 thousand rubles per square meter. Business and economy class apartments fell the most, and demand for new builds dropped sharply. Analysts warn that ready offers may disappear in a few months, and prices may rise again.

At the end of last week, a congress of realtors was held in Irkutsk. It discussed the problems that have recently arisen in the region’s real estate market. Some figures were announced. Thus, the average cost of new housing in Irkutsk has decreased, compared with the pre-crisis period, by 4-15%, and amounts to about 41 thousand rubles per square meter. Such prices for housing in the city were in the second and third quarters of 2007.
The most in-demand district of Irkutsk remains Oktyabrsky, which accounts for 66% of the city’s total volume of new construction. The average price per square meter here is 43.4 thousand rubles. Recently, there has been a trend toward reducing the difference in the cost per square meter in the Oktyabrsky and Kirovsky districts. In the Kirovsky district, as of February 2009, a square meter costs 54.1 thousand rubles, in the Sverdlovsky district - 41.8 thousand, in the Kuybyshevsky district - 39.6 thousand, in the Leninsky district - 39 thousand rubles.
The greatest price drop is seen in business-class real estate (improved-layout apartments and apartments in new standard apartment buildings). According to bank statistics, it was precisely these apartments that were purchased with borrowed funds. Economy-class housing has also become cheaper (apartments in multi-story, panel, or brick buildings, apartments in wooden apartment buildings). The smallest decrease in price is observed in the luxury housing segment (apartments with individual layouts, unique locations, and a service life not exceeding 10 years). This is explained by the fact that the share of luxury housing purchased with mortgage financing is very small: 5-6% of the total volume of transactions.
The decline in housing prices is linked to a drop in consumer demand. According to builders’ estimates, since last summer the volume of housing sales in new developments in Irkutsk has fallen by 30-50% compared with the pre-crisis period.
However, this situation will not last long. According to analysts, in just a few months apartment prices will start rising again. The general director of the multi-listing company "Emelsi," Alexandra Finkelshtein, made a forecast: in two to three months, offers will disappear from Irkutsk’s primary real estate market.
According to her, the market is currently in a difficult situation. In Irkutsk there are about 100 projects at various stages of completion. The number of apartments that can already be moved into now is only 17. Apartments with completion dates in six months number 26-30. "That is a tiny figure. In the next two to three months this housing will be sold out. After that, only apartments with completion dates a year or more away will remain on the primary housing market," said Alexandra Finkelshtein.
"Right now is the most convenient time to buy housing at low prices," said Alexandra Finkelshtein. "In just six months, due to the housing shortage, prices on the secondary market will rise, and on the primary market there will be no offers of ready-to-move-in housing at all."