Turkmenistan’s officials and entrepreneurs buy elite residential property in an attempt to save capitals

Apartments are now being sold in new residential houses located in the Olympic village in Ashgabat.

Apartments cost from 780 thousand to 1, 315 mln manats ($223 � 376 thousand using the official rate or $39 � 66 thousand at the black market. rate), with the value of 10.327 manats ($2950 using the official rate or $516 at the black market. rate.) per square meter.

30 year mortgage loans are allocated to purchase apartments but the downpayment of 10% needs to be paid straightaway.

The website ATN reports that the priority is given to families with many children who share apartments with other families as well as residents who have dependent disabled relatives. Yet, according to the estimates of the news outlet, depending on the loan terms and conditions, an employee will have to make a monthly payment of about 2900 manats. With the average monthly salary of 10001500 manats, the majority of Turkmenistan's population cannot afford to purchase the aforementioned accommodation.

However, according to correspondents of Chronicles of Turkmenistan. apartments are selling quite quickly. As of late October, 22 apartments out of 118 have been left in one of the apartment blocks.

Turkmenistan's officials and wealthy entrepreneurs are reported to be buying elite residential property not only for themselves, but for their children, grandchildren and even close family members. Moreover, many purchase the accommodation with manats, which are depreciating in their value, in an attempt to save their capitals investing in real estate and for this reason the majority of apartments in elite houses are vacant.

Some, in a conversation with correspondents of Chronicles of Turkmenistan. confessed that they applied for a 30year mortgage loan hoping that the situation will change over time and they will not need to repay the loan..

Apart from apartments in highrise buildings, standard twostory cottage are sold in the suburbs. For instance, a new section of cottages located in the village of Choganly is under construction for the time being. These cottages cost much cheaper � 412 thousand manats ($118 thousand using the official rate or $20,6 thousand at the black market. rate). However, if customers are content with the quality of apartments in the Olympic village, the construction of cottages has to be completed using the residents' own resources. Since the construction works are underway in an emergency mode in order to commission the facilities in the runup to holidays, many shortcomings are identified in the houses � cracks in the walls, warped windows and doors, peeling plaster, and even missing bathroom and toilet equipment.

Source: Chronicles of Turkmenistan