Irkutsk, until recently among Russias ten most expensive cities for housing, has now fallen to 23rd place, with a square meter of resale housing costing about 45 thousand rubles. Construction costs remain high due to old buildings, utilities, and seismic risk, while builders profit per meter is minimal. Why housing in Irkutsk has become cheaper than in nearby cities and why construction here has become almost unprofitable, in the report.
Irkutsk was for a long time among the top ten Russian cities in terms of housing prices. Recently, the situation has changed dramatically. According to the Department of Pricing in Construction and the expert-analytical work of the Russian Builders Association, which conducted a market analysis together with the Union of Cost Engineers, the cost of a square meter of secondary housing is now about 45 thousand rubles. Irkutsk has dropped to 23rd place, overtaken by almost all major Siberian cities: Krasnoyarsk, Novosibirsk, Kemerovo.At the same time, in Irkutsk, compared with neighboring cities where housing is more expensive, the cost price of apartments is high. That is understandable - an old city, utilities are needed. In addition, it is a seismically hazardous zone, so the costs are higher in themselves.
So the profit from each square meter for our builders is very small. A square meter of new housing here costs 40.5 thousand rubles. (In Kemerovo -45 thousand, Novosibirsk - 46 thousand, Krasnoyarsk -48 thousand.) And it costs builders 36.6 thousand. So construction here has objectively ceased to be a profitable business.