No sooner the ruble fluctuated a bit than the most restless Belarusians started to worry, anxiously comparing the rates in the exchange offices of different banks. Once the U.S. dollar declined a bit, the nerves calmed down. But was it worth the worries? How does the Belarusian real estate market react to quite natural fluctuations in the currency basket of the National Bank?
It is a matter of common knowledge that the new real estate market is growing. Several years of stability of the national currency, the cuts in the refinancing rate and consequently in interest rates on bank loans have made the purchase of a new apartment a reality for many. This is why the demand for residential real estate has gone up.
Moreover, Belarusians have started to view real estate in the capital city as a profitable investment once again. Even if a family owns one apartment, an additional living space is a wonderful investment in the future of children and grandchildren!
According to experts, after the projects to build such residential complexes as Mayak Minska, Minsk World and Chelyuskintsev Park are fully completed, the cost per square meter will rise 1.5-2 times! Here is the objective data: in the Mayak Minska residential complex, the construction of which is almost complete, the cost of a square meter has already doubled, both for commercial real estate and residential housing.
Mayak Minska residential complex
Minsk World residential complex
Chelyuskintsev Park residential complex
The cost of renting an apartment here is also impressive. The price for a studio here reaches Br1,650 per month, a one-bedroom apartment is as expensive as Br2,280 per month. For property owners this is a pleasant factor. Those who have to rent an apartment should look for a solution to the problem. More and more buyers are emerging in the market!
The increased responsiveness of the rental market to currency punctuations is due to the fact that this is an area of private relations, said Vadim Tachkin, managing director of Viva Capital Invest.
“Apartment owners prefer to get their rent in hard currency. Landlords are very reluctant to revise the lease terms in view of currency fluctuations. It is the exception rather than the rule and it is done to keep good tenants,” the expert believes.
Vadim Tachkin, managing director of Viva Capital Invest
In his words, as long as the market favors landlords over tenants, the situation is unlikely to change dramatically. The status quo can only be challenged by a significant shift in the supply/demand ratio in the rental market.
“I really hope that in the future the government will become a more active player in this market and will challenge the private sector. So far, currency fluctuations are a headache for tenants, as they will have to pay extra for the rent,” Vadim Tachkin said.
A good alternative to renting an apartment is purchasing an apartment of your own. After all, the financial terms offered by major development companies are getting more attractive every year. Indeed, those who pay in one go for their apartments in the Minsk World, Mayak Minska and Park Chelyuskintsev complexes will be able to get discounts. This applies to payments made using one's own savings and a bank loan!
Lending programs, in particular, those of partner banks, deserve thorough consideration in this regard – these loans can cover up to 90% of the apartment's cost in these complexes and can be repaid over the period of up to 20 years. The interest rate on a Belarusbank loan will be 4.74% per annum in the first year, 9.75% in the second year and the third one, and 12.32% later on. The interest rate on a BPS-Sberbank loan will be 6.99% per annum in the first two years.
Thus, if you take a bank loan, the developer will give you a discount for purchasing an apartment. It is a real deal!
Vadim Tachkin points out that the Belarusian real estate market offers unique terms for buying new property – interest rates on bank loans are not too big, while loans are issued in the national currency.
“Until recently, due to relatively high interest rates, taking a loan to purchase an own apartment could not be considered as an alternative to renting an apartment. Today the regulator demonstrates stability so those who opt for a loan reap benefits. There are no currency risks because the national ruble is stable enough. The majority of people receive salaries in Belarusian rubles so it is more convenient to predict the loan repayment schedule,” the expert says.
According to him, lower rates prompt to look for ways to replace the existing mechanisms which had been used in the market before. People are increasingly seeking to buy rather than rent an apartment. After all, it is convenient to buy an apartment, pledge it to the bank and serve the loan, while living there as an owner.
Most importantly, according to Vadim Tachkin, the pressure of high interest rates which made loans unfordable and unattractive because of significant overpayment, has disappeared.
“It is true that loans envisage some overpayment. But the opportunity also costs money! Those who do not like to pay interest are trying to save money and get a chance to buy a home closer to their retirement age. Others would prefer to overpay and live in their own apartment today! It is important to have a guarantee that you and your loved ones have a home of your own!” Vadim Tachkin says.
It is also possible to resolve the housing issue fast even if you have neither necessary funds to buy an apartment nor an opportunity to make use of a bank loan. A long-term installment plan from the developer is a unique financial tool to make a purchase! The installment plan covers the period of up to ten years. No interest rates, no excess payments, no attempts to inflate the price per square meter. You need neither income verifications nor guarantors to sign the contract. You only need your passport! True, you need to make a down payment but the company treats every customer on a case-by-case basis. Even the lack of sufficient cash to make the down payment will not be a problem. For instance, you can borrow up to Br40,000 from a partner bank without income verifications and guarantors. The option would work well for many Belarusian families with stable income!
“I believe that in recent years the residential construction market has moved away from currency dependency and will remain quite stable in the future. Prices are nominated in Belarusian rubles, customers receive loans in the national currency too, and the developer pays for the main construction materials in Belarusian rubles. This is why currency storms pass by the residential construction market. Prices for new apartments will continue to increase gradually, but mostly not due to the situation in the global markets, but due to greater availability of loans and stronger demand for housing as more customers come into the market,” Vadim Tachkin said.
According to him, the situation allows operating in the country and being concerned only about the factors that emerge in the Belarusian economy.
“This is the right approach. The currency market is the market of investors, people who take risks. The residential construction market, however, should demonstrate stability in order to be predictable. When a person earns and spends money in the currency of the country they live in, global crises affect them to a much lesser extent,” Vadim Tachkin believes.
The spring promo from the real estate developer is available for apartments in the Minsk World complex at incredibly favorable terms. Pleasant discounts on every square meter bought in installments apply to apartments in Beijing and Sydney Lux houses of the Champions quarter, New York and San Francisco houses of the North America quarter, Hong Kong and Tokyo houses in the Asia quarter, and the Alexandria house in the Africa quarter. You will save a lot if you take advantage of the promo!
Sydney Lux house
Hong Kong house
New York house
San Francisco house
Another important offer is that the down payment for these apartments is only 20%! This makes it much easier to buy an apartment for families that do not have enough money for the down payment.
Please, direct your attention also to the houses that have become available for sale recently – the best prices are offered at the start!
The last houses of Emirates Wave is an opportunity to buy an apartment in the nearly finished Emirates Lux quarter, within walking distance from a metro station under construction. And the Quebec house in the North America quarter offers modern and comfortable housing in compliance with world standards!
Emirates Wave house
Lobby of the Emirates Wave house
Lobby of the Quebec house
The spring promo will help save a lot while buying an apartment in House No.1 of the Park Chelyuskintsev complex near Chelyuskintsev Park with a view on Independence Avenue – in the very heart of the nation's capital!
House No.1 of the Park Chelyuskintsev complex
Lobby of House No.1 of the Park Chelyuskintsev complex
You can still buy an apartment in the Mayak Minska complex which construction is in the final stage – apartments are available in the houses Raphael, Gauguin, and Michelangelo. It is a chance for those who would like to enjoy all the advantages of infrastructure of a new Minsk neighborhood built according to the “city within a city” principle!
Raphael and Gauguin houses
Lobby of the Raphael and Gauguin houses
Lobby of the Michelangelo house
All the details of buying an apartment in the Minsk complexes are available on the website bir.by and from the developer's sales offices.
The sales office to sell apartments in the Minsk World complex is open from 8:30 till 20:30 on weekdays and from 9:00 till 20:00 on weekends and holidays at 9 Mstislavtsa Street (1st floor, Dana Center), Vostok metro station, Minsk.
The sales office to sell apartments in the Mayak Minska and Park Chelyuskintsev complexes is open from 9:00 till 22:00 every day at 11 Mstislavtsa Street (1st floor, Dana Mall), Vostok metro station, Minsk.
The mobile hotline number is 7675, fixed-line numbers are +375 17 269−32−90, +375 17 39−39−465.
The market grows, which means time has come to buy an apartment of your own!