Growth factors: the construction of cottages and cottages is getting more expensive before our eyes

«Prices in the construction markets change almost weekly. I'm looking at the construction. I went to the market in May — the timber was 7 thousand rubles. And yesterday — already 8 thousand! In the same market and at the same seller. That's how my estimate will grow five times by the end of construction», — Evgeny complains in the CYAN magazine.

Materials for the construction of suburban housing in Russia against the background of the weakening of the ruble may rise in price by another 20-25%, according to experts interviewed by NI. At the same time, it is worth bearing in mind: materials make up 50% of the total construction costs.

The head of the TSN Real Estate office, Alexander Kostin, believes that, relative to September 2022, the construction of country houses has already become more expensive by 10-25%, depending on the market segment and materials.

The construction of houses made of glued beams, taking into account the work, according to the Association of Wooden House Construction, already costs 60-65 thousand rubles per square meter, frame houses — 40-45 thousand rubles, houses made of aerated concrete — 70 thousand rubles.

Since the beginning of the year, building materials have really been gradually increasing in price. Now the growth has accelerated so much that developers had to plan to increase the prices of country houses. The experts we interviewed call the range from 5% to 20%. For example, a 200-meter house, which APS DSK built at the end of March for 5.99 million rubles, now costs 6.49 million rubles. By the end of the year, its price is likely to be 6.99 million rubles, experts say. Thus, the increase will be 15-20%.

Both domestic building materials and imported components are becoming more expensive. Why is this happening?

«The rise in price has affected everything. Everything that is produced in our country in terms of construction is done at large production complexes. All their lines are serviced by German, Turkish, and Chinese companies. All production lines, all maintenance, all manufactured elements — everything is purchased. Accordingly, with the growth of the dollar, prices also rise. It is also worth bearing in mind that the yuan is growing. As long as the yuan grows, building materials will also grow in price. Most of the components are also manufactured abroad. All engineering, electrics, radio points — everything is ordered abroad at large factories, and the cost increases many times if we are talking about a brand,» Konstantin Pulkin, owner of the construction company <url>, told NI.

But even if companies work on domestic products, there will still be a rise in price. According to Konstantin Pulkin, this is a worldwide trend: «Even if I sell some materials cheaper, they will be bought and sold more expensive.»

If domestic materials have risen in price by an average of 20%, then the increase in cost for imported products is more dynamic, it ranges from 50 to 300%, depending on the type of product and the possibility of its import substitution. Such figures were given by the owner of the construction company «Lazovsky House» Maxim Lazovsky. Logistical difficulties and the growth of the dollar play a role.

«Everything is getting more expensive due to inflation, but it is also aggravated by the exchange rate. Whatever you buy, you buy it for the currency (dollar, yuan), and the share of imports in finishing materials is quite large. It may not be directly imported material, but the product is made from imported raw materials or equipment that needs not only to be repaired, but also to be bought and imported. What I would add about the suburban market: the only consolation is that wood prices have decreased recently. Due to the fact that exports have gone (a significant part of it), especially for exports to Europe, wood is not very expensive now. In St. Petersburg, the board cube has fallen in price from 25 thousand rubles to less than 15 thousand rubles,» says Konstantin Porotsky, managing partner of Omakulma Group, chairman of the RSS Committee on low—rise construction.

The salary of workers also plays an important role. Now the number of migrant workers in the industry is decreasing — they are not ready to come to Russia to earn money due to the fall of the ruble. The shortage of personnel, according to experts, can lead to an increase in wages by 10-20%.

«Due to the same inflation, workers' salary appetites are growing, and they have to pay more,» confirms Konstantin Porotsky.

Furniture also plays an important role in the cost of repair and furnishing of an apartment and a house. In the near future, it is not worth expecting a decrease in prices for it. The Russian economy is somehow embedded in global processes, primarily through currency interaction. And while the ruble continues to weaken against foreign currencies, prices for building materials, real estate, and furniture will grow.