A former adviser to Russia’s economy minister, Evgeny Nadorshin, cautions that residents should not rush into real estate purchases. The guidance, reported by Evening Moscow, centers on a belief that apartment prices are overvalued and that investing in them may not yield favorable returns in the current climate.
Nadorshin explains that with demand cooling and incomes under pressure, housing prices for residential assets are likely to ease. He argues that buyers should pause and assess the longer-term outlook rather than make impulsive purchases with savings that could be needed for stability in uncertain times.
He notes that the downturn in demand could push prices lower, creating a more challenging market for prospective buyers. The cautious stance is rooted in the anticipation that an extended period of economic strain will continue to weigh on household budgets, reducing the appetite for high upfront costs and prolonged mortgage commitments.
Beyond the Russian context, there have been broader concerns about real estate markets in other major economies as well. Recent headlines point to a sharp slowdown in construction activity and investment in housing in large markets, with developers forced to adjust capacity and strategies to cope with diminished demand. Analysts indicate that overall investment in housing has softened in the first half of the year, reflecting cautious sentiment and tighter credit conditions that affect developers and buyers alike.
Industry data from market research firms show that the volume of real estate investment in key sectors experienced a noticeable decline in the period under review. The numbers suggest that capital inflows into new housing projects contracted compared with the previous year, underscoring a shift in market dynamics from optimism to caution among investors and builders.
In related regional developments, a notable agency noted that a major real estate office with ties to a global brand had closed its Russia operations temporarily and then resumed activity under its former name as it reorganized after leaving the market. This shift illustrates how international brands adapt to changes in regional markets, balancing global practices with local realities while navigating regulatory and economic pressures that influence project pipelines and service offerings.