Even as demand eases, the market for secondary homes in Russia showed a modest price uptick in October. Prices rose by about 1.3 to 2.2 percent versus the prior month, with market observers noting a clearer lift in regional areas while major cities like Moscow and St. Petersburg held steadier in value. A key takeaway from Cyan Analytics is that the average price per square meter across the 18 largest regional markets reached 134.2 thousand rubles, marking a notable shift driven by several regional hubs. The strongest price gains were concentrated in Chelyabinsk, Krasnodar, and Rostov-on-Don, signaling a divergence between regional trends and the capital markets. Meanwhile, Moscow recorded a modest 0.5 percent increase, and St. Petersburg saw a slight decline of about 0.8 percent.
Etazhi reported that Volgograd and Surgut also experienced meaningful price movements, underscoring a broader regional dynamic, even as the capital cities lagged behind. Real estate analysts attribute this gap to higher unmet demand in the regions and a broader rebalancing as buyers recalibrate price expectations in different markets.
Looking ahead, market watchers anticipate a softer trajectory for secondary property values. The anticipated moderation would come alongside a replenishment of supply, increased competition among sellers, and a greater readiness to grant concessions. Cyan Analytics notes that the supply exposure already picked up in October after a quieter summer period, signaling a potential stabilization rather than a continued rally.
Forecasts suggest prices could slip further, particularly where new developments are concentrated, such as in the Moscow and Leningrad regions. This expectation reflects a combination of rising inventories, competitive pressure, and seller willingness to negotiate more aggressively to close deals in a slower growth environment.
Into the recent discussion about Russia’s real estate cycle, experts have weighed possibilities for a forthcoming correction as the market processes slower demand against the backdrop of shifting lending conditions and regional cost dynamics. The conversation has also touched on mortgage practices, with speculation that down payment requirements could rise, potentially cooling demand and influencing transaction momentum in the near term.