24 January 2018, Wednesday, 1:00

Siarhiej Antusievich: Housing price growth in the conditions of declining economy is paradoxical


Whereas real estate prices in the neighboring countries are decreasing, the go up in Belarus.

This is how the deputy chairman of the Belarusian Congress of Democratic Trade Unions (BCDTU) Siarhiej Antusievich commented for the charter97.org web-site on the unfounded real estate price growth in Belarus.

“Housing construction is a soap bubble, which is pumped with credit assets and which is partly give a development push to the economy and related branches. People, who buy an accommodation for loanable funds, buy also household equipment and different trivia. The issue is not resolved by the mere purchasing of an accommodation. Such an accommodation needs a large amount of money to be invested in it in order to put it in order. Now there are still greater opportunities in the country as compared to the ones in the Soviet times – a person can select the tiles, wallpapers and equipment, before the $100 dollars fee has been introduced”, - the trade union leader noted.

He added that it will not be possible to lower the prices in the housing construction area by cleaning the officials.

“Naturally, when there is a high demand for accommodation, especially in large cities and Minsk, there are preferential borrowing schemes for different groups of people or certain groups of officials from the MIA, KGB etc. It is clear that there will be schemes and there will be people, who would attempt to fall into this category. That is why the corruption in the construction branch is triggered by the existing order of things and it will hardly go away. May be it could tone down a bit, but not more than that”, - the BCDTU’s deputy chairman is convicted.

He believes that the accommodation prices cannot grow endlessly and it should stop at some point at the sensible level.

“The prices are not economically grounded right now. Even more so that I read that in Poland and Lithuania accommodation prices are either falling or not changing. Here we have the economy declining with the salaries and real estate prices growing at the same time. This is a paradox, and it is even hard to explain why it is happening this way, but this is how it is”, - Siarhiej Antusievich concluded.

We would remind that prices for regular apartments are setting new records.