Prices for new housing in Old Moscow have surged to record highs, with the price per square meter crossing the 600 thousand ruble mark for the first time. According to RIA Novosti, citing data from the real estate firm Metrium, this milestone underscores strong demand amid tight supply. The moment signals a shift in the city’s housing market as developers increasingly push premium products in sought‑after districts while buyers compete for a shrinking pool of new stock. The trend also mirrors broader shifts in buyers’ preferences, including a growing focus on modern layouts, better energy efficiency, and amenities that keep pace with urban renewal efforts across central areas.
Today the average cost of a square meter in the old Moscow districts stands at 609.9 thousand rubles, representing a 16 percent rise over the past twelve months. This jump highlights how quickly values have moved higher as fresh stock remains scarce and builders confront rising materials and labor costs. For households, the impact is twofold: larger upfront payments and stricter mortgage qualification criteria, which can squeeze monthly budgets while reinforcing the durability of demand from long‑term buyers and investors alike. Market observers note that this trajectory has drawn attention from both domestic buyers and international observers keeping close tabs on Moscow’s real estate cycle.
In the mass segment of Moscow’s primary housing market, growth remains more restrained, at roughly 3 percent annually, with prices around 330.97 thousand rubles per square meter. The split between segments reveals distinct buyer profiles: families seeking affordability versus buyers chasing newer, mid‑sized, downtown projects. This slower pace in the mass segment does not erase price momentum elsewhere, as higher‑end launches and limited supply in core districts continue to pull overall averages upward. Analysts emphasize that financing conditions play a critical role in shaping how quickly the market expands across different price bands.
Looking ahead to next year, market watchers anticipate a softer pace of price growth in the capital’s primary housing market. The common explanation centers on elevated base mortgage rates and tighter lending standards, which temper borrowing appetite. As borrowing costs stay high, some potential buyers pause or recalibrate expectations, cooling competition during launch periods and promotions. Yet demand for newly built homes persists, and the overall price level is likely to stay elevated relative to many peers, supported by ongoing construction activity and the scarcity of available units in prime areas.
Supply conditions have tightened over the past two months in Moscow’s new‑build segment. By the end of October, the stock of available flats and apartments had fallen by 2.3 percent, following a 31 percent drop from the previous month. This shrinking inventory helps explain why prices remain firm even as developers adjust pricing and launch calendars. Earlier, an analyst noted that the timing of mortgage rate cuts remains uncertain, a point that adds caution to buying plans and keeps a close eye on policy signals and lender criteria.