Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

State Revises Apartment Cost Figures

The State Statistics Service has revised its estimate for the price to construct a square meter of residential space in Moscow to 66,063 rubles ($2,170), but developers said it was too low.

The average price nationally to build a square meter of residential space in the first three quarters of 2009 increased 20 percent year on year to 29,002 rubles, the service said in a report last week.

But in certain regions the figure was much higher, including: Moscow (66,063 rubles), the Primorye region (56,144 rubles), the Kamchatka region (50,924 rubles) the Nenets autonomous district (71,719 rubles) and the Yamal-Nenets autonomous district (60,236 rubles).

Those figures back up conclusions made earlier this month by Regional Development Minister Viktor Basargin, who said the average cost nationally to build a square meter of housing, including land and utilities, should be 28,000 rubles but the cost was vastly higher in certain regions because of markups.

The statistics service bases its estimates on the sum listed by developers when they sought permission for construction, an official at the service said.

Developers said this methodology leaves a considerable margin of error. While the figure is accurate for construction expenses, it does not include other investments, such as apartments for the city, connection to utilities networks and borrowing costs, said Capital Group commercial director Alexei Belousov.