The Russians are massively thinking about home renovation: how to do without a loan

It is difficult to solve the problem without additional loans at current prices for work and materials

In 2023, the number of Russians planning to do repairs has increased. According to a survey by the National Financial Research Agency (NAFI), the number of those wishing to renovate the “facade” of their homes has reached 41%, an increase of 5% over the year. Why, for not the easiest year in the history of modern Russia, the proportion of compatriots who want to make repairs has grown, how much it will cost to restore beauty in an apartment, and whether it can be done without attracting a loan, MK found out from experts.

The desire to change the appearance of their homes for the better, the Russians did not lose even in the context of the ongoing special operation, falling incomes, high inflation and the withdrawal of a number of foreign players from the construction market.

However, the situation with the departure of foreign brands from the Russian market turned out to be more complicated and in some ways more comical than expected. After loud “door slamming” and pathetic statements that the meeting with our country was a mistake for them, a year later it turned out that in reality only 9% of building materials and equipment manufacturing companies left it – mostly American. This is evidenced by the data of the National Association of Builders (NOSTROY). Another 21% of foreign legal entities rebranded, while the rest did not even do this and continued their work in Russia as if nothing had happened. In such conditions, the plans of the Russians for repairs this spring can only be limited by the size of their personal budget.

There are several reasons why the number of compatriots who want to update the situation at home has grown. “Two directly opposite factors clearly played their role here: some are planning repairs because they bought or are going to buy new housing, and others because they cannot afford such a purchase, so they are content with redevelopment or an even simpler renovation option, so that at least somehow improve living conditions, ”said Valery Yemelyanov, an expert on the stock market at BCS World of Investments.

Another reason for the popularity of renovations is the preparation for renting already commissioned houses. Last year showed a record for this indicator. As Denis Konovalenko, managing partner of Prime Life Development, pointed out, in 2022, about 100 million sq.m. were put into operation. housing throughout Russia. And now these apartments must be brought into the appropriate form for resale, living or renting. In addition, over the previous two years, there was a large volume of sales from developers in connection with the introduction of preferential state mortgage programs, which also played a role in increasing demand for repairs.

As for the budget for the renovation of the apartment, when it is formed, several factors must be taken into account:

• repairs are made for living or for renting housing;

• what is the condition of the apartment when it is put into operation (are there partitions, is it necessary to redo the heating system, is it possible to “squeeze” the usable area out of the layout as much as possible, etc.);

• location of the property;

• level of desired repair (economy, comfort or business class).

“On average, the cost of repairs with furniture today costs from 60,000 rubles per square meter, taking into account work and material,” Yury Buravsky, General Director of Investremont, shares his calculations. But this is not the only assessment. According to Yulia Dymova, director of the Est-a-Tet secondary real estate sales office, the most economical repair of a one-room apartment can be done even for 500 thousand rubles. Moreover, inexpensive household appliances can also be included in these amounts. A good repair, according to data from construction companies, starts from 100 thousand rubles per square meter, a more budget option – from 50 thousand rubles.

“On average in Russia today it is possible to meet 1 million rubles to repair a one-room apartment from scratch,” Konovalenko continues the conversation. With an average apartment of 55 square meters, we can talk about a budget for repairs of about 2 million rubles. “Obviously, without loans, such an amount can be quickly collected – within a year at least – only if your income is much higher than average, for example, 300 thousand rubles a month,” Yemelyanov believes. “Either you had real estate (apartment, house, land) that you just sold.” Recall that last year the median salary of Russians amounted to about 40 thousand rubles. According to the HeadHunter survey, this year the majority of employers (60%) wanted to increase the salaries of their employees. But even taking into account such an optimistic development of events in the labor market, it is obvious that without borrowed funds, the vast majority of Russians will find it difficult to organize even cosmetic repairs of their homes this spring.

However, judging by the results of the NAFI survey, citizens are not particularly afraid of the debt burden. Probably, the last year has taught compatriots to act in the “here and now” mode, not postponing the implementation of plans for a better life for later.