Expert comments on Moscow mayor's decree on construction of housing with minimum area of 28 square meters
Since August 1, it is prohibited to design and build one-room apartments smaller than 28 square meters and two-room apartments smaller than 44 square meters in the Russian capital. Muscovites have reacted mixed to the innovation. Some believe that due to the large footage, housing will become completely unaffordable. Others support the authorities' decision, since developers have sometimes reached the point of absurdity, building studios of 9-12 «square meters».
Oleg Repchenko, Head of the Analytical Center «Real Estate Market Indicators», shared his opinion in an interview with MK.
— Apartments smaller than 28 square meters are prohibited from being designed in Moscow from the end of spring 2024: on May 16, Moskomexpertiza distributed an information letter on this matter. Therefore, Sobyanin's decree, in essence, does not change anything. And the ban on «hobbit apartments» is connected with their overabundance on the Moscow market, — says the expert.
— The amount of such housing has increased sharply in recent years against the background of preferential mortgages. In order to increase the cost per square meter while remaining within the framework of preferential credit limits, developers have been reducing the area of apartments and designing more and more small-sized apartments. This runs counter to the state's demographic policy: even a family of two is uncomfortable living in such a tiny apartment, and a family of three, with a child, is impossible. Therefore, the ban is long overdue.
— Of course, small-sized housing was popular among buyers, but only because it was the cheapest offer on the market. Such apartments were often purchased for investment purposes or to monetize the benefits of preferential or family mortgages, because people do not have enough money for housing of a normal size. Let me remind you that against the background of preferential mortgages, apartment prices in Moscow have increased approximately twofold over the past three to four years.
— In the future, developers may have to sell 28-meter one-room apartments at the price of 15-20 «square» studios. By the way, this is a completely normal and widespread practice in many markets — in conditions of stagnation, to stimulate demand by offering more for the same money.
— Since the demand for tiny apartments is forced, the decision of the Moscow authorities to limit the minimum area of apartments will not force buyers to pay more for more spacious housing — they are already paying at the limit of their financial capabilities. After July 1, these opportunities have been reduced even more: the preferential mortgages that supported sales are no longer available. And the rates on market mortgages are prohibitive (from 20%). And, according to the latest forecast of the Central Bank, they will remain so for a long time.