INDEX OF THE QUALITY OF LIFE (IQL)

When transferring specialists and labor force from one region to another, opening new divisions, chapters or locations, attracting new employees, the companies need information about the cost of renting residential places (houses, apartments) in different regions or cities in the country. 


Cost of housing Index is built on information about the cost of renting housing of different types – single-room, two-rooms, three-rooms and four-rooms apartment) in Russian cities. 


Renting rates change regularly and often rapidly. Renting rates are more vulnerable and sensitive to different economic changes than prices for purchasing real estates and also to seasonal and other factors. Therefore they should be measured with shorter time intervals than other real estate prices. 


Our reports with CHI are used by companies providing housing compensations for their employees or paying for housing, when transferring employees to different regions for longer terms. Housing rates are the part of general cost of living indicators in a region. 

METHODOLOGY

Standardized formal procedure of data collection of renting rates allows to conduct reliable time comparisons, to estimate the dynamics of changes and to make predictions for the future, and also to make comparisons between cities and regions. 

Precision of estimates. Information about renting rates is obtained using direct measuring procedure (“real cost for real client in a particular moment in time”) rather than abstract theoretical averaged cost or estimates which are usually included in analytic reports, secondary sources, data of regional state statistics or expert interviews in real estate sector. 

Current availability. When constructing the Index we take into account the availability, real offers for renting in housing market. Property available for immediate rent is included in the database only.

Multiple sources. Reliability and stability of the data is improved by accumulating data from multiple different sources, different real estate agencies, therefore specific experience of individual agencies does not influence research results.

Information is collected using standard parameters for consumers requiring renting (the same consumer’s’ characteristics and demand, the same renting period, the same renting conditions). It is extremely important for making conclusions on average renting rates because of high variability and deviation of renting prices by individual characteristics of client and current market situation (available offers).

Procedure of data collection is based on the detailed analysis of factors influencing the renting rate in different regions: quality of interior – materials, furniture, time of last renovations, quality of exterior, type of house, length of renting, equipment of housing, structure of the cost (taxes, communal services, etc.).

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