Moscow’s Core and Periphery Expand in New Housing Starts and Demand

No time to read?
Get a summary

More than sixty percent of new building starts in the historic core of Moscow, along with adjacent eastern and western districts, are concentrated in the central, eastern, and western zones. This finding comes from a study by Metrium in collaboration with Regions Development, available through socialbites.ca. The data illustrate a clear preference among developers and buyers for prime urban environments that offer accessibility, dense infrastructure, and high investment appeal. The study highlights that these three districts together represent a sizable share of new construction activity in the capital and signals evolving market dynamics that city planners and buyers should watch closely.

Across these areas, twenty-one housing projects began in the central district, eleven in the eastern sector, and eleven in the western sector. In terms of equity participation agreements, these zones account for roughly 30.1 percent of all transactions. Additionally, buyers are showing increasing appetite for properties in these districts, while interest continues to grow in nearby neighborhoods that balance prestige with potential for future appreciation. As the market diversifies, the center, eastern, and western districts emerge as the most active hubs for residential development and transactions in Moscow, reflecting a shift toward areas with strong infrastructure, evolving urban appeal, and expanding amenities.

Overall, the combined center, east, and west now hold about 44.6 percent of Moscow’s total housing supply. Moreover, their share in the latest new-construction exhibition, opened last year, is nearly 17 percentage points higher than before. The center and western districts have long been regarded as the most prestigious areas, yet buyer attention is increasingly turning to promising, up-and-coming districts. For instance, in the Eastern District, the historic Preobrazhenskoye area is being developed into a modern, premium location with substantial investment potential, illustrating how value is broadening beyond traditional cores. Industry voices emphasize that these shifts reflect a deliberate draw toward diversified options that offer both lifestyle benefits and long-term financial attractiveness.

Today, Moscow’s main market features around 370 new buildings. From August 2023 through July 2024, developers brought 70 projects to completion. Among the developments completed in the past year, 15 target the mass segment, 23 aim for the business class, 14 are positioned in the premium tier, and 18 appeal to the elite segment. This distribution underscores a pricing-and-segment strategy that mirrors buyer demand across varied income groups while signaling continued expansion across all market tiers.

Earlier market notes confirmed that mortgage activity in Moscow has shown an unexpected rise, a trend that aligns with the broader interest in the central and adjacent districts and supports expectations for ongoing demand and price resilience in the near term. Citations: Metrium and Regions Development study; socialbites.ca.

No time to read?
Get a summary
Previous Article

Aging Mechanisms and Dietary Impacts on Health Trajectories

Next Article

American researchers link air pollution to stronger summer storms