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 Living costs

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chickengold92
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Join date : 2010-10-29

PostSubject: Living costs   Wed Dec 29, 2010 3:40 pm

Living costs

Patriarshiye ponds, one of the most prestigious places in Moscow

'Aerobus' residential building under construction

During Soviet times, apartments were lent to people by the government according to the square meters-per-person norm (some groups, including people's artists, heroes and prominent scientists had bonuses according to their honors). Private ownership of apartments was limited until the 1990s, when people were permitted to secure property rights to the places they inhabited. Since the Soviet era, estate owners have had to pay the service charge for their residences, a fixed amount based on persons per living area.

Due to the current economic situation, the price of real estate in Moscow continues to rise. Today, one could expect to pay US$4000 in average per square meter (11 sq ft) in the outskirts of the city[80] or US$6,500–$8,000 per square meter in a prestigious district. The price sometimes may exceed US$40,000 per square meter in a flat.[81][82][83] It costs about US$2500 per month to rent a 1-bedroom apartment and about US$1500 per month for a studio in the center of Moscow.

A typical one-bedroom apartment is about thirty square meters (323 sq ft), a typical two-bedroom apartment is forty-five square meters (485 sq ft), and a typical three-bedroom apartment is seventy square meters (753 sq ft). Many cannot move out of their apartments, especially if a family lives in a two-room apartment originally granted by the state during the Soviet era. Some city residents have attempted to cope with the cost of living by renting their apartments while staying in dachas (country houses) outside the city.

In 2006, Mercer Human Resources Consulting named Moscow the world's most expensive city for expatriate employees, ahead of perennial winner Tokyo, due to the stable Russian ruble as well as increasing housing prices within the city.[84] Moscow also ranked first in the 2007 edition and 2008 edition of the survey. However, Tokyo has overtaken Moscow as the most expensive city in the world, placing Moscow at third and behind Osaka at second.[85] Critics of their methodology argue that this survey replicates the lifestyle that a senior executive would have in Washington DC, counting certain very expensive brand name foreign goods, but disregarding the many lines which are far cheaper in Russia, e.g. household staff, drivers, nannies, etc.[citation needed]

In 2008, Moscow ranked top on the list of most expensive cities for the third year in a row.[86]




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