The rate of increase in second home prices in Russia will slow down by the end of 2023, but a sharp decline in housing costs should not be expected. In this respect kp.ru said Konstantin Aprelev, Vice President of the Russian Association of Realtors.
“People have very high expectations that inflation will rise. And because of these fears, there are many who want to invest their ruble savings in something that an ordinary person can understand. And in Russia this is primarily real estate,” explained the expert.
However, if high mortgage loan interest rates remain high for a long time, the demand for second homes will decrease, as the majority of transactions in the country are mortgage loan transactions.
According to Aprelev, the same price increases will not occur in the primary housing market. He also noted that the supply of new buildings in the country is unlikely to decrease.
“The price increase rate will decrease, albeit slower than in the secondary market. “In my opinion, the increasing demand for new plants that meet two criteria will continue: they are approaching the commissioning date and they are of good quality,” added the expert.
Member of the Russian Association of Realtors, real estate market expert Konstantin Barsukov previously aforementionedIt was stated that Russian developers will continue to reduce the size of apartments to hide their increasing costs.
Previously real estate agents offered Abolition of privileged mortgages for housing under construction in Russia.