The growth in prices of new buildings in Russia is slowing down due to a decrease in buyer activity; This could lead to a buildup of supply in the future and limit the cost per square metre. This was reported by “Kommersant”
Average home prices in major cities rose 2.4% in October, following 3.6% in the previous month, according to analysts surveyed by the publication. The reason for this is that the more affordable ones are sold first. Additionally, developers include inflation risk in the price.
However, demand has already started to fall after a rise in August due to tightening mortgage conditions. Developers are actively bringing new projects to the market, fearing a further decline in demand. Experts predict that current supply levels will remain the same in the coming months, followed by an increase of 10-15%. This will force developers to take a more measured approach to pricing. They can stimulate demand with discounts and promotions towards the end of the year.
Early week in Russia guess increasing the down payment on your mortgage.
Formerly Central Bank anxious Lowering mortgage lending standards.