Demand for second homes in Moscow fell notably over the past year, slipping by 31 percent according to data cited by Kommersant and based on figures from Avito Real Estate. The market narrative shows a clear shift: while interest in secondary housing wanes, asking prices have continued to edge upward, rising about 6 percent from 253 thousand to 269 thousand rubles per square meter.
In practical terms, the cost per square meter declined in the secondary housing sector across 26 Moscow districts, signaling a broader regional softening in value even as some districts see pockets of stronger pricing. The sharpest declines were recorded in Babushkinsky district where prices dropped by 29 percent, Northern Izmailovo at 24 percent, Molzhaninovsky at 23 percent, and Savelovsky at 22 percent. This dichotomy highlights how overall market heat can cool while certain neighborhoods experience sharper price corrections.
Analysts note a substantial cooling of activity in Moscow’s secondary housing market. The slowdown is attributed not only to reduced demand but also to a shrinking supply, which contracted by 31 percent compared with the previous year. This supply constraint adds a layer of complexity to price movements, with some buyers waiting for more favorable terms while developers adjust expectations.
Sergei Khahulin, head of secondary and suburban real estate at Avito, commented on financing dynamics affecting buyer behavior. He pointed to rising mortgage rates as a key driver of diminished interest, explaining that the Central Bank’s benchmark rate more than doubled over the year, moving from 7.5 percent to 15 percent. Higher borrowing costs naturally dampen demand for large-ticket purchases such as homes, particularly in a market where affordability is already a critical factor for many buyers and investors.
Industry observers have also looked to neighboring markets and policy signals to gauge potential trajectories. The Association of Realtors has discussed possible scenarios for real estate prices in Russia, emphasizing that optimistic projections would require a steady supply of favorable financing terms and continued demand. Market watchers caution that future shifts will hinge on the balance between supply, demand, and macroeconomic conditions, including inflation, wage dynamics, and credit accessibility.
As the year closed, experts suggested that the Moscow secondary housing sector could experience a period of recalibration. Buyers may become more selective, favoring districts with better infrastructure, transportation links, and long-term value prospects. Sellers who can align pricing with current market realities—without sacrificing perceived value—might find opportunities to complete transactions more efficiently. In this environment, data from reputable sources such as Avito Real Estate and coverage from major business publications remains essential for understanding the evolving landscape and for making informed decisions about purchase timing, location, and financing.
Looking ahead, industry participants and potential buyers are advised to monitor mortgage rate trends, regional price movements, and inventory levels. The interplay between rates, demand, and supply will continue to shape Moscow’s secondary housing market, influencing how neighborhoods perform and where value may emerge over the coming months.