Date: Thu, 02 Aug 2007
From: "Murray Feshbach" Murray.Feshbach@wilsoncenter.org
Subject: Interesting item re housing prices
In a very recent issue of the Russian-language military journal, Orientir, no. 7 July 2007, pp. 50-62 (found on http://www.eastview.com), Colonel General Nikolay Reznik, head of the Russian Ministry of Defense's Main Training Administration, wrote a lengthy article for military personnel about the implications and portent of the 4 National Projects for them. The 4 projects are Heatlh, Education, Housing and Agriculture, as listed by him.
Among the many very interesting points he makes, there is one that frankly even I was shocked at. And that deals with the cost of housing. To quote:
"Housing prices in recent years in Russia have grown by gigantic rates (gigantskimi tempami), by 2 to 3 percent per month [sic]. But in Moscow and Moscow suburbs it has grown by 2.5 percent per week [sic]. In the opinion of experts, only 9 percent of the Russian population can accumulate the means to purchase an apartment."
Economic growth is impressive, but inflation in the housing market at this level would seem to be excessive.