In Moscow this year, a substantial portion of new flats entered the market under different ownership arrangements. Specifically, 11 out of 15 newly advertised flats are not being sold through equity participation agreements, commonly known as DDUs, according to market evaluations summarized by CIAN and reported by RBC.
A broader look at the full previous year shows a large share of activity around DDUs: 51 projects were withdrawn from the market under DDU terms, while 40 projects were pulled without such arrangements, based on the same market sources.
Analysts note that in the first quarter of 2023, sales began across 15 total buildings, compared with 23 buildings in the first quarter of 2022. In that quarter, 11 buildings without DDU coverage proceeded to the market, reflecting a shift in how new apartments are positioned for buyers.
According to CIAN, the publications indicate that these non-LTD projects are typically sold through standard sales and purchase agreements, pre-sale agreements, or investment contracts. The trend appears to have been developing since 2021. While such sales are legally permissible, they do not provide the same protections for shareholders as those guaranteed under law FZ-214, leading analysts to describe this segment as gray.
Experts attribute part of the value growth to two factors: the absence of a state mortgage concession specifically for the apartment market and the challenges in reclassifying land parcels as apartment-ready properties for residential use. This combination has influenced how buyers and developers approach the market and how risk is distributed among participants.