There is an increase in demand for apartments in newly constructed buildings in Moscow. This trend was reported by Kommersant, which notes a notable shift in the market dynamics. Over the past year, the supply of such projects has contracted by nearly a third, signaling tighter availability for buyers looking at fresh, undeveloped developments.
Analysts from NDV Supermarket Real Estate have traced a specific pattern in the Moscow primary market. Their data shows that the share of apartments in first-stage construction projects — those still in foundation pits or on the initial floors — has fallen from 37.5% to 25.2% between October 2022 and October 2023. This drop underscores a growing preference among developers and investors for later-stage inventories, even as demand remains high for early-stage opportunities.
Ruslan Syrtsov, General Director of Metrium, attributes much of the sustained demand to investor activity. He explains that many buyers acquire units at the foundation-pit stage with the intention of reselling at a higher price once construction advances, capitalizing on expected price appreciation and market momentum. The pattern reflects a wider strategy in which early-stage purchases are used to secure potential gains tied to project completion and delivery timelines.
As supply tightens, pricing dynamics shift. The NDV Real Estate Supermarket reports that the cost per square meter for foundation-pit units rose by 26.8% over the year, outpacing the 14.7% increase observed in prices for completed, ready-to-move-in homes. This divergence highlights the premium placed on earlier access to new-build inventories and the higher perceived risk associated with longer development horizons, which buyers are pricing into the deal.
Concurrently, a growing inventory of finished homes remains unsold. Metrium notes a 41.4% year-over-year increase in the number of completed plots, reflecting developers’ caution in moving these units off the market and investors’ reluctance to buy ready-made properties in a market that still carries price volatility and financing considerations. The imbalance between supply and demand for finished homes further reinforces price pressure on the new-build segment’s earliest phases.
Looking at macroeconomic signals, financial authorities have flagged potential implications of rising mortgage costs on house prices. The Central Bank has voiced concerns that higher borrowing rates could translate into higher property prices, adding another layer of complexity for buyers, investors, and developers navigating the Moscow market. Market watchers continue to monitor how credit conditions will interact with supply constraints in shaping overall affordability and demand in the coming quarters.
In summary, the Moscow market is witnessing a clear tilt toward early-stage, foundation-pit projects within the primary market. With supply diminishing and demand remaining robust, prices for these early-stage units are expanding at a faster rate than those for completed homes. Investors’ appetite for ground-floor and foundation-stage opportunities explains a sizable portion of the activity, even as the broader market recalibrates to financing conditions and evolving consumer preferences. The overall effect is a market that remains vibrant but increasingly selective, rewarding projects and investors who align with this new pricing and timing dynamic.