There is a trend in Russia to build increasingly smaller apartment buildings in order to lower prices and make housing more affordable for buyers, but in reality the effect is the opposite. In our conversation with the following person on this subject: URA.RU said Ekaterina Nikitina, vice president of the Moscow Association of Realtors.
According to him, the area of flats in new buildings has been gradually decreasing in the last 10 years. This is happening against the backdrop of rising property values.
Developers are reducing the area of apartments to reduce prices and allow buyers to purchase living space as quickly as possible. As a result, the demand for real estate increases, which causes prices to rise. It’s now taking longer for people to save again. Accordingly, developers are again trying to choose smaller apartments due to increased demand and rising prices. This turned out to be reverse logic,” Nikitina explained.
Evgeny Shlemenkov, vice president of Opora Rossii and head of the Construction, Housing and Communal Services department, also noted that this trend is typical for all regions, but Moscow developers responded to it the fastest.
Ox Capital Server Operations Director Murtazaev predicts that the trend will continue. According to him, the average cost of a one-room apartment in Moscow in 2023 will already be 10 million rubles, compared to the current 8 million. Moreover, according to Murtazaev, 95% of all apartments in Moscow are purchased under concessional mortgage programs.
Before that, DOM.RF experts warnedThere is a problem with the availability of new buildings in Russia.
Formerly Bank of Russia registered slowdown in mortgage issuance.