Rising property prices and poverty are driving down housing sizes
Demand “creates” micro-apartments
In Moscow, they began to build houses with apartments less than 10 square meters, according to Izvestia. The reduction in the average area of housing has been observed since 2014 and is caused by an increase in real estate prices with a simultaneous fall in the incomes of Russians.
Micro apartment of 4 square meters in South Korea
As an example, there is a complex in the Veshnyaki district in the east of the capital, consisting of four buildings. Basically, they have apartments – studios with an average area of 16.7 sq. m and an apartment with an area of nine “squares”.
According to the General Director of Optima Development David Khudoyan, this is how the developers “are trying to make housing more affordable” and added that such housing is in demand among “young people who are active in their careers and socially, who actually only spend the night at home”.
Maria Litinetskaya, partner of Metrium, noted that these trends are observed all over the world, including Paris, Hong Kong, Rome and New York.
In Ushakov’s dictionary “apartment” is a room, mostly large and quiet. Today this word refers to objects used for temporary residence or rental.
Well, since the trend is global, it means that four-meter “apartments” are not far off, as in the “foremost of the market economy” – South Korea. There are a lot of “active young” who only spend the night outside of work. And they can’t even afford nine-meter “mansions”.
Free market advocates may be content: demand creates supply. Poverty and lack of money of workers “create” such joke on people as micro-apartments. Now, criticized by various “Varlamovs“, the Soviet “Khrushchyovkas” will pass into the category of “elite housing”.
In just three quarters of 2021, the total investment in Russian real estate increased by 32% compared to the same period last year and amounted to 229 billion rubles.
Developers are skillfully adjusting to the falling purchasing power of the population. They are practically not interested in the comfort of their clients. After all, these are not owners of construction companies, but hired workers forced to spend the night somewhere between hours of shifts will sleep side by side in small rooms the size of a kitchen. But the “successful entrepreneurs” will have “savings” for the next yacht or estate in Florida.