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Only 13 Per Cent Of Russians Plan To Buy Home In Near Future

The prospects of Russian customers to acquire a new housing unit remain relatively stable. However, like in 2007, only 13 per cent of the residents were planning to improve their living conditions or to buy a new residence in the next seven years, according to an opinion poll, conducted by the Russian Public Opinion Research Centre (RPORC).

Sustainability of housing demand could be attributed to a number of factors, such as the relatively strong development of Russian economy, successful mortgage programmes and improved lending conditions, according to RPORC. Plans for buying a new dwelling could be impacted by deferred demand or the increased residential prices, the study's authors commented.

The survey shows that this year the number of Russians, willing to buy housing for personal use, has soared to 47 per cent, as compared to 30 per cent recorded in 2007.

The share of people, who acquire a residential unit for their families, has slid to 22 per cent, compared with 36 per cent registered the year before. The number of those who buy a unit for their children, has grown to 15 per cent from nine per cent in 2007, showing a trend that the adult population wanted to live separately from their children.

The share of respondent, who are thoroughly satisfied with their current living conditions and see no need to improve them, has risen to 59 per cent from 47 per cent in 2007, which testifies either to a general lifestyle improvement or that people have become less demanding.

Generally, trust in mortgage lending has not changed. The number of respondents who do not trust government mortgage schemes and consider interest rates on loans too high remains as high as previous year. Russian customers have become slightly more mobile – only two per cent of respondents said that they would not buy a dwelling due to its location – for fear of difficult transport communication or due to attachment to their old home. By comparison, in 2007 their number stood at five per cent.

The share of Russians, who cannot afford buying residence due to low income remains high – 41 per cent, RPORC said. The survey covered 1 600 respondents from 153 Russian towns and villages.