The State Mortgage Company (SMC) commented on the increase in the cost of one square meter of housing under My Home program. Officials published the corresponding explanations on the company’s Facebook account.
The main reasons for the rise in apartment prices are:
- Rising prices for cement, metal, wood, finishing materials, engineering systems (80 percent of products are imported from Russia) — this increases the cost of construction by 50-60 percent and contributes to the growth of prices;
- An increase in builders’ salaries by an average of 15-25 percent, an increase in the cost of special equipment and logistics services by 5-10 percent, as well as an increase in prices for connecting to the necessary communications by 5-10 percent;
- The impact of inflation: inflation in Kyrgyzstan reaches 6.7 percent, the rate under My Home program is only 4 percent per annum — this reduces the cost of credit funds, but creates risks for the construction of new facilities.
