An industry analyst noted that even with a record level of unsold homes in Russia, there is no immediate threat to the real estate market. The market guidance coming from leading industry observers suggests the sector is navigating a period of normalization rather than a collapse in demand.
On November 1, the volume of primary residences listed for sale reached a historic high, totaling 71.1 million square meters. Over the past year, the share of unsold new housing rose by 1.9 percentage points, reaching 67 percent. This shift reflects more active construction activity and a broader pace of project launches that have increased the volume of available inventory.
Experts emphasize that these figures do not indicate a surplus of demand or an overstocked market. Instead, they point to a return to balance driven by a robust pipeline of new projects after several years of tight supply. Sales activity, while down from peak years, remains a measurable portion of historical levels, with a substantial amount of space still in the early stages of development.
The unsold stock in new developments grew by 5.4 million square meters year over year as of November 1, 2023, underscoring the scale of current construction output and the ongoing adjustment in the market.
Earlier assessments suggested the onset of a market downturn in Russian real estate, yet recent data indicate the market is adapting rather than deteriorating. Analysts point to factors such as sustained construction momentum, new financing terms, and policy shifts that are helping stabilize the sector.
Meanwhile, secondary housing prices have reached historically high levels, reflecting a long-standing demand dynamic and the influence of supply constraints in prior years. Market observers continue to monitor price movements, inventory levels, and the pace of new project completions to gauge the trajectory of both primary and secondary markets. The overall message remains that careful balance and gradual adjustment characterize the current state of Russia’s real estate sector, rather than a rapid, destabilizing collapse.