In Russia, the housing market showed notable price movements in 2022, with new homes tending to rise faster than the secondary market. The average price per square meter for newly built properties climbed by approximately 14.6 percent, while prices in the secondary market increased by around 10 percent. These shifts emerged amid broader macroeconomic dynamics and evolving consumer expectations across major urban centers.
Among metropolitan areas, certain cities recorded stronger growth in the price per square meter for existing homes. Omsk, Krasnodar, and Voronezh posted particularly pronounced gains, with increases well above the national average. Rostov-on-Don, despite its large population, displayed a more modest growth rate, pointing to divergent pricing trajectories within the country’s largest cities.
Market participants note that price dynamics were cooler than in the previous year, a pattern they attribute to ongoing political and economic uncertainties. Many potential buyers paused or postponed their plans for real estate purchases, choosing to wait for more clarity on the environment. Yet observers remain cautiously optimistic that the market could regain momentum as new accessibility programs, such as favorable mortgage options for newly constructed homes, potentially support demand. The trajectory, however, is expected to remain restrained by real incomes and macro conditions, limiting a broad surge in buying activity.
Looking back, the market saw a robust rise in property values in the year prior for both segments. In 2021, prices for new homes advanced by a double-digit percentage, while the secondary market experienced even stronger growth. These prior gains set a high baseline for the following year and influenced expectations among buyers, sellers, and developers across the housing spectrum.
Industry insiders anticipate that the first quarter of the following year could bring a modest correction in new build pricing, potentially a decline in the low single digits. The anticipation reflects a balancing act between supply conditions, interest rates, and consumer sentiment, suggesting a more measured pace of price movements rather than a rapid escalation. For buyers and investors in Canada and the United States exploring cross-border insights, the Russian experience highlights how policy signals and financing options can shape demand in interconnected real estate markets.
Overall, the narrative from market observers emphasizes the sensitivity of housing prices to income levels, regional economic performance, and credit availability. While price ascents remain a feature of many segments, sustainable growth will likely hinge on stabilizing macroeconomic factors and targeted financing supports that help buyers move forward with confidence.