Today, with one average salary in the capital, one can buy 0.65 sq. m on the secondary housing market. For comparison: 10 years ago, an average salary would have been enough for only 0.46 "square meters." Realt.by found out how housing affordability has changed in Minsk.
For this, the portal's analysts studied how the ratio of the average city salary to the average price per square meter has changed since 2013, and also analyzed the interest rates at which real estate loans were issued during different periods.
As it turned out, the cheapest square meters in the capital were in 2016.
The average price of a "square" then was $1100–1120 in equivalent. Experts call that period a "price bottom." However, the average salary 10 years ago was $510–520. As a result, it wasn't even enough for half a square meter! At the same time, loan rates almost reached 30% per annum. The situation was worse only in 2015: back then, an average salary could buy only 0.43 sq. m.
However, housing was most affordable in the capital in 2022.
At that time, an average salary ($875–880) was enough to buy 0.69 sq. m at an average price of $1270 per square meter. However, there was one nuance: loans remained quite expensive — 22% per annum. Therefore, considering all three factors, the recent year 2024 was the best time: the average salary was $930, the price per square meter was around $1500, and the loan rate was 15% per annum.
What about now? Apartments in Minsk cost twice as much as in 2016.
The average price per square meter is $2200, and the average salary is $1400. As a result, one can buy 0.65 sq. m with it. This is more than in the year of the "price bottom." And loans are offered on quite attractive terms — at 15–16% per annum.
However, there is an important signal indicating that apartment affordability is beginning to decline: prices per square meter are growing faster than citizens' incomes. This has already affected the number of transactions.
Comments