In March 2023, Moscow’s secondary housing market saw a notable uptick in activity, with transactions rising by 7% compared to the same period a year earlier. This trend was reported by Interfax through INCOM-Emlak data, signaling continued momentum in demand despite shifts in pricing dynamics.
Analysts noted that demand in Moscow’s secondary housing segment surged to be 27% higher in March than in February, and that activity in March 2023 surpassed March 2022 figures by a similar margin. These figures underscore a resilient interest in existing homes, driven by buyers seeking value in a competitive market.
According to Sergei Shloma, the Director of Secondary Markets, the year-ago period experienced a pronounced boom, marked by peak demand and rising prices. After that spike, buyer activity cooled before rekindling in October. Despite these fluctuations, he observed no indicators suggesting a fundamental decline for the secondary market, with conditions appearing to gradually stabilize.
Shloma added that price dynamics in the current cycle are largely shaped by developers, noting that the cost of housing in the secondary market is unlikely to drop while overheated pricing persists on new builds. He suggested there is little reason for secondary-market prices to push higher in the near term, given the broader market balance and spending patterns among buyers.
Interfax also highlighted data from Cyan analysts, who pointed to a similar trajectory for the months ahead. The projection indicates a softening in secondary-market prices in Moscow, even as demand for these properties in Russia remains somewhat less vigorous than in the previous year. This combination suggests a cautious consumer environment, where buyers are more selective and pricing remains a key factor in decision-making.
Market observers emphasize that while March 2023 exhibited stronger activity, the overall calendar year may still reflect a more balanced tempo. The interplay between supply, developer pricing, and buyer confidence appears central to understanding the current pace of transactions. In this context, the secondary market could experience gradual normalization rather than rapid shifts, with price adjustments aligning more closely with affordability realities and financing conditions.
For buyers and investors watching Moscow’s real estate landscape, the takeaway is that demand in the secondary sector remains robust relative to the immediate past, yet price movements are cautious. As developers maintain pricing strategies, the secondary market is likely to respond with measured movements, avoiding steep declines while awaiting periodic price realignments dictated by macroeconomic factors and consumer sentiment.
Analysts advise tracking the evolving balance between supply and demand, along with regulatory signals and lending conditions, to gauge how the Moscow market will behave in the near term. While the direction remains nuanced, the current data points toward a stable trajectory with incremental changes rather than dramatic swings in the secondary housing market.