Russian officials have emphasized that a drop in the price of housing per square meter is unlikely in the near term. The sentiment comes from Nikita Stasishin, deputy minister of construction, housing, and community services, who initially conveyed the message to a Russian news agency and subsequently commented on the broader market outlook as it relates to the ongoing costs of building. The takeaway is clear: despite fluctuations in certain inputs, the overall trajectory for housing affordability does not point toward a rapid decline in prices per unit area.
Stasishin explained that several factors counter a price drop. He cited rising costs for some construction materials, the higher price of project financing, and softer sales momentum as elements that tend to keep prices from decreasing. In his view, these dynamics are linked to the declared quality standards of projects, the cost of land, and the infrastructure required to support new developments. Taken together, they form a balance that supports stability rather than a downward shift in pricing, even as builders work to deliver value and maintain quality across projects.
“Today, in my view, there is a favorable balance between price levels and the methods by which living conditions can be improved,” the deputy minister stated, underscoring a pragmatic approach to housing policy and market behavior. The emphasis is on sustainable pricing that aligns with construction realities and the goal of expanding access to better housing without triggering unsustainable price pressure.
In early 2023, a broader context emerged across Russia as districts initially reduced housing output by roughly half in response to a sharp decline in demand. This contraction reflected market adjustments rather than a signal of permanent price declines, with developers and local authorities recalibrating their strategies to align supply with evolving buyer preferences and financing environments. The pause in activity set the stage for a more measured pace of development, focusing on project viability and the long-term health of the housing market.
Earlier reporting in Izvestia, which drew on data from developers, indicated that at the start of 2023 a new wave of price increases appeared within the sector. The rise, estimated at about 5 to 10 percent, was attributed to higher construction costs driven by material price increases and related factors. These shifts highlighted the sensitivity of new housing prices to input costs and the interplay between market demand, financing costs, and regulatory expectations. In the face of such dynamics, policymakers and builders alike were mindful of preserving affordability while ensuring that project quality and infrastructure commitments remained at adequate levels to sustain investment and growth.