Russian buyers show rising interest in new-build apartments across regions in late 2023
In the fourth quarter, demand for apartments in newly constructed buildings grew by roughly nineteen percent compared with the prior quarter, signaling a clear shift in buyers’ appetite. This rise reflects a broader pattern seen across many regional markets and was highlighted in a major market study from a leading real estate platform, with results later summarized by industry outlets for readers in Canada and the United States [Industry study on new-build demand].
Across all formats, studios emerged as the most sought-after option among buyers, with demand for studios rising by about twenty-seven percent. During the final three months of the year, the supply of newly built flats increased modestly by around one percent, while overall prices climbed by approximately six percent. The trend points to strong buyer interest paired with a tight but growing inventory of newly developed housing.
Looking at the regional picture, the fourth quarter saw demand rise in most of the 33 provinces or comparable regions surveyed. Some cities reported double-digit gains, such as Krasnoyarsk where interest effectively doubled, and Ryazan where demand climbed by around sixty-nine percent. In Krasnodar, buyers showed a more than forty-two percent increase in appetite. The capitals were not left out: Moscow experienced a substantial uptick, and Saint Petersburg saw a modest lift in activity as the year closed [Regional market notes, Q4].
Analysts attributed the uptick in primary housing demand largely to developments in the financial sector. As mortgage rates fluctuated and central bank policy remained in focus, buyers aimed to lock in purchase prices and long-term loans, creating a sense of urgency to finalize transactions. This behavior appeared consistent whether buyers intended personal residence use or viewed homes as investment opportunities. The heightened activity in metropolitan centers like Moscow was particularly pronounced in this environment [Market commentary: mortgage and policy impacts].
On the supply side, several markets faced a pullback in available homes for sale in the final quarter. In twenty-one of the thirty-three cities tracked, new listings declined. Notable decreases were observed in Barnaul, Perm, Tomsk, and Simferopol, among others. Saint Petersburg also saw a notable drop, while Moscow’s inventory held steady. This tightening of supply occurred even as construction activity continued to advance in some regions, underscoring a dynamic balance between new construction and buyer demand [Supply-side update].
Amid these shifts, certain cities demonstrated vigorous development momentum. Krasnodar led with more than a fifty percent increase in new supply, followed by Ryazan with roughly a forty-four percent rise and Irkutsk with about a thirty-eight percent gain. These figures reflect a robust pace of construction and project commissioning in selected hubs, contributing to regional market resilience and more choices for buyers in the near term [Regional construction momentum].
Across the board, prices rose in most markets surveyed during the fourth quarter, with only a few exceptions. In particular, Irkutsk experienced a slight decline in new-building prices, while Novosibirsk saw prices remain essentially flat. The price per square meter remained highest in elite markets like Sochi and Moscow, with Saint Petersburg also commanding a significant premium relative to many other cities. Conversely, markets such as Bryansk, Stavropol, Ulyanovsk, and Izhevsk offered more affordable options per square meter, illustrating a broad spectrum of pricing across regions [Price trends by city].
These findings feed into a larger conversation about housing affordability, regional growth, and consumer finance as markets in North America and beyond consider how similar factors might shape demand for new construction in the coming year. Ongoing dialogue among lenders, developers, and buyers continues to influence both the speed of transactions and the scale of new projects in diverse urban and provincial settings [Industry-wide outlook].
Earlier industry notes highlighted questions about rental pricing trends for 2024, underscoring how the debate around housing costs remains central to evaluating market dynamics and investment potential for households and investors alike [Industry notes on rentals and investment potential].