Housing and building materials market prices
SRO NP “Association of Builders of St. Petersburg” reported data on price growth since the beginning of 2011. for apartments in new buildings within the inflation level and is 7%. Despite the increase in prices, the demand only increases with the volume of sales. However, building materials are much more quickly and more significant. Building materials are about 15-25% of the total cost and with an increase in their cost by 10%, the final cost increases by 3-4%.
The impact of the price of building materials on the cost of new buildings
According to President RBI Holding Eduard Tiktinsky, the main problem was the suspension and even freezing of work at half the construction sites of St. Petersburg.
When analyzing the market over the past 10 15 years, it revealed a tendency for pulling up prices for building materials to the price per square meter. However, builders talk about increasing value due to the high cost of building materials.
However, when viewing demand data, a trend of its significant increase from 10 to 50 percent is revealed. Since the beginning of 2011, the demand for new buildings has been increasing, and regardless of the type of house. According to the executive director of the NDV SPb Olga Kozimyan, it is precisely the demand for housing that helps to increase prices for it and for building materials.”Also, the increase in prices for building materials contributes to construction associated with the laying and repair of roads.
Seasonal jumps in the cost of building materials
In addition to cyclic prices, seasonal jumps occur. Increased activity is manifested in the summer. This summer, the cost of building materials has increased especially. With an increase in the price of cement for the first half of the year by 13% already during July, the increase was about 7-12%. A further increase in price up to 10 thousand per ton was expected by the President of the Association of Builders of Russia – Nikolai Koshman . According to RBI, in just summer, concrete went up by 16%, commodity valves rose 9%. A cube of monolithic structures imitated 6-7%. Among other things, the brick has risen in price. Its price increased by 8-13% depending on the types. Aerated concrete in price added about 6% over the summer
Thus, we see not only a cyclic increase in prices, but also a seasonal one associated with an increase in demand for materials due to an increase in construction sites in the warm season.