ToWork More Than 13 Years for a One-Bedroom Apartment in Moscow, RedArrayList Requires
Looking to buy a humble abode in the capital city? You're in for a long haul if you're coming from the regions. Analysts from the real estate portal, "MIR KVARTIR," crunched the numbers and found that on average, it takes a staggering 14.3 years to save for a one-bedroom apartment in the city. Oh, and did we mention it could take almost a lifetime in some areas - close to 32 years!
A resident of Chukotka can snag a flat the quickest - around 6.9 years, given their average wage of over 178.7 million rubles. Muscovites, Magadan residents, and folks from the Yamalo-Nenets Autonomous Okrug (YANAO) follow closely behind at 8.2 years, owing to their average wages of more than 151,000 rubles. Residents of Kamchatka, the Nenets Autonomous Okrug, Sakha Republic (Yakutia), and Sakhalin Island can expect to wait between 9 to 10 years.
Remarkably, the time needed for savings has significantly increased by 3.7 years over the past five years, a sobering reality for those dreaming of a place to call their own.
Pavel Luценko, the CEO of the federal portal, sheds some light on the issue: "The increase in salaries over the last few years hasn't been enough to compensate for the rising cost of living. While salaries have risen by 83% since 2020, apartment prices in Moscow have increased by a whopping 147%!"
And if you're eyeing a new construction, get ready to work even harder as the savings requirement for a new one-bedroom property increases to approximately 18.3 years of steady work.
Photo: DELA
Enrichment Data:
The average monthly salary in Russia is about 103,991 RUB, and a modest one-bedroom apartment in Moscow is estimated to cost around 3 million RUB. To make things easy, let's assume you're living frugally without any expenses for food, transportation, leisure, etc. In that case, you'd need to save up approximately 28.8 months (or just under 2.4 years) to buy a one-bedroom apartment in Moscow.
But hey, it could be worse - residents of some regions might have to wait over a decade (or even their entire lives) to save enough for a home!
- The increase in real-estate prices, especially for one-bedroom apartments in Moscow, is causing significant challenges for personal-finance management, as the time needed for savings has risen by 3.7 years over the past five years.
- Investing in the housing-market, specifically in new construction properties, requires even more diligent savings, with the savings requirement for a new one-bedroom property increasing to approximately 18.3 years of steady work.
- While finance news can be disheartening for those seeking to enter the housing-market, particularly in the capital city, residents in some regions may face even longer waiting periods, making it nearly impossible for them to save enough for a home within a reasonable timeframe.
