Since the beginning of the Covid-19 pandemic, global manufacturers have suspended their operations creating a pent-up demand, which manifested itself some time later. Domestic producers of metals, polymers, wood and other raw materials reoriented to foreign markets, provoking a deficit in the country.
Prices for building materials began to go up since 2020. Consumers felt a noticeable surge in early 2021. A true hunt for building materials at adequate prices began. The industry, which is a strategic one for each state, responded swiftly to these changes.
Prices for lumber in Belarus almost doubled. A similar trend was observed in Canada and the United States, and Belarus' closest neighbors: Poland, Lithuania and Russia. Fittings, roof materials, windows, finishing materials, insulation increased in prices. For some items, the price increase was significant - 40-80%. Prices are not likely to return "to the normal" this year.
Another factor was the rising manufacturing costs in neighboring countries on the heels of growing prices for raw materials. According to experts, the main reason is the growth of global prices. Now is the time when these two conditions have converged.
For example, according to the Belarusian Statistics Committee, prices for lumber (coniferous edged and unedged) surged by 26.4% in January-June, those for building parts and structures made of wood, veneer, MDF - by 18.9%. Building parts and structures made of PVC, aluminum became more expensive by 10.5% during this period.
"There are fundamental reasons for the rise in prices for building materials. After the tough lockdowns and forced downtime, coupled with financial losses incurred by enterprises, the construction sector swiftly bounced back. Over the past year suppliers of building materials increased prices by tens of percent, and in some cases multifold. An increase in the cost of imports was another reason. Prices for wood and lumber rose at an accelerated pace. They are likely to keep growing on the back of high demand. The inaccessibility of one or another type of materials leads to the shortage of alternative products. For example, with the growth of prices for metal profiles used in the construction of partitions, builders began to massively use bricks. This again triggered a rise in prices. According to the expert, the prices will fall one way or another, but the process will be long."
"For the past 30 years, there has never been a situation like the one that we witnessed since the pandemic broke out. The situation on foreign markets is now very unconventional. Usually the depreciation of the ruble leads to an increase in prices for building materials. Now this scheme does not work. Prices for these products keep going up despite the relatively stable exchange rate of the national currency. As a result, domestic prices for some commodities caught up with the global prices and for some products even exceeded them,” said Sergei Chernyshev, Director General of Ventallю
Prices for building materials have been on the rise since autumn 2020. Moreover, at the moment no one can predict when this process will stop.
The real estate market is an interesting investment option at any time, though focuses somewhat shift in the times of crises.
Will the rise in prices for building materials push prices for residential real estate up? Experts believe this is likely to happen.
“Non-subsidized housing is not regulated by the government, its cost is not limited in any way. This is how market mechanisms work. If prices for building materials continue to rise, this will naturally have an impact on housing prices. We encountered certain difficulties in this part. In the first quarter of 2021, prices for metal rose by 80%, prices for some types of lumber skyrocketed by more than 200%,” the minister said.
The rise in prices for building materials began in 2020, continued in 2021 and, according to many analysts in the construction industry, this trend will remain in place in the future. It is natural to assume that prices for real estate will also go up. But some large market players were able to anticipate this situation and, whenever possible, forestall it.
“Our project Minsk World has dozens, if not hundreds, of suppliers. This spring we held negotiations with our main partners to discuss an increase in the supply of building materials and equipment. As a result, the deliveries were increased by 30-50% compared to last year. In addition to that, we reduced our profit margin, which allows us to keep prices unchanged for a certain period of time. At the same time, we have not compromised on quality and construction pace. By the way, we plan to complete the main works at the Minsk World complex by the end of 2023. This is a way ahead of schedule.”
By the end of 2021, the real estate investment market may grow by 15-20% globally. At the same time, the Global Investor Intentions Survey 2021 prepared by CBRE suggests that the requirements for real estate have changed compared with 2019.
Today the market is experiencing a mix of recession and stagnation. Those who hesitated whether to buy real estate or not a year ago have eventually made up their mind. We see the so-called pent-up demand. The world is learning to live with COVID-19, and economic crises end sooner or later. Those who initially took a wait-and-see approach are now buying real estate, growing their businesses, thereby investing in their future.
Forbes analysts are convinced that smart investment in real estate is the most profitable asset type.
For those who have already made up their mind to invest in real estate but are still undecided what kind of property they want to buy can use the advice of RBC Real Estate experts who suggest paying attention to new houses.
People all over the world are now searching for profitable real estate investments.Multifunctional complexes are an element of attracting potential investors. The Minsk World mixed-use complex has already proven its competitiveness. Construction activity is racing along at an accelerated pace. Works are underway in all 30 quarters of Minsk World. The developer does not increase the prices per square meter.
Do not miss the chance to buy a new apartment at old prices!
Minsk World is a modern architecture, well-developed infrastructure, a large field for business. All these factors combined are of utmost importance in any country.
This is what investors see when considering the Belarusian capital as a site for investing.
Minsk World today is beauty and functionality, the best price quality ratio!
One's own apartment is not only a place for living, but also an asset we leave to our children. Residential and commercial spaces can be used for profit. That is the investment appeal.
Real estate can and does bring additional income to its owners!
The constantly growing demand for residential and commercial premises in the Belarusian capital has made Minsk a leader in the European region in terms of investment attractiveness. A comparative analysis showed that the profitability of residential real estate in Minsk is higher than in Vilnius and is quite comparable with that in Moscow. The Belarusian capital outran even Nicosia, although it is well known, what a paradise for investors Cyprus traditionally is.
There is a wide range of new buildings in Minsk today. For example, this year alone, sales of apartments in almost 30 houses started in Minsk World complex. At the construction stage, the developer offers good discounts.
Powerful and flexible financing tools, such as long-term installment plans (up to 100 months) with a minimum down payment, as well as partner credit programs for up to 20 years make real estate in Minsk World quite affordable.
The combination of comfort and style both in the entire Minsk World complex and inside each house will not go unnoticed by apartment buyers and tenants.
This is the best option for investing, confirmed by a high index of reliability of the developer, which has been working on the Belarusian real estate market for 15 years.
Buying an apartment in Minsk World is the best step to a profitable future!
Primary real estate is almost equal in price to secondary housing. With a comparable price range, buyers are finding more and more arguments in favor of apartments in the new mixed-use complex.
Minsk World is no longer just a commercial project. It is a new image of Minsk!
You can choose and book an apartment in the Minsk World multifunctional complex on the website bir.by or by phone 7675. Fixed-line numbers: +375 17 269-32-90, +375 17 39-39-465.
You are also welcome in the Minsk sales offices, located close to the Vostok metro station in Minsk at 9 Mstislavtsa Street (first floor, Dana Center, open from 8:30 till 20:30 on weekdays and from 9:00 till 20:00 on weekends and holidays) and 11 Mstislavtsa Street (first floor, Dana Mall, open from 9:00 till 22:00 every day)
The article uses materials from the websites: www.sdvor.com, regnum.ru, www.forbes.ru, www.ventall.ru
