In August, developers for the first time in a long time began offering discounts of 8% to 20% to buyers of new buildings, the TYMY company told socialbites.ca.
Alexander Perevoznikov, head of the company’s new buildings department, said that by July 2024 most developers had recorded a significant decline in sales.
“Some developers recorded an eight-fold decrease in sales in July compared to June. But it cannot be said that the market has completely stopped,” Perevoznikov said.
The expert emphasized that in July and August, when the concessionary housing loan ended, there was an active demand from people who were waiting for the rush to pass. It turned out that their calculations were right, as developers now received a discount.
According to Perevoznikov, a real price drop should not be expected, at least in the near future. He explained that this is not just a marketing decision, but a review of the entire financial model of the project.
“According to our preliminary calculations, the number of active buyers who are able to buy and are considering buying apartments at current interest rates has decreased by 70 percent following the completion of the concessional mortgage program,” he said.
The expert noted that the market has entered a new reality, and so far everyone has taken a wait-and-see attitude. According to his estimates, some significant changes can be expected in the market by November and even December.
“Depending on market dynamics, it is quite possible that in September and October, different sales departments of developers will turn to even more serious negotiations,” Perevoznikov said.
According to Dom.RF, after the completion of the preferential mortgage program, housing price growth in Russia slowed down significantly. In July, the average price increase was 0.4% compared to 1.4% in June. From July 1, 2024, preferential mortgages at a rate of 8% for housing in new buildings in Russia were abolished. The preferential IT mortgage program was extended until 2030 and a number of changes were made to the issuance conditions.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.