The most significant factor in raising the living standards of families in 2023 came from transactions in the secondary real estate market. Nikita Stasishin, the head of the Ministry of Construction of Russia, discussed this at the Day of the Construction Industry and Housing and Communal Services during the exhibition forum “Russia” at VDNH, as reported by RIA News. The message was clear: millions of Russians enhanced their living conditions by purchasing apartments on the secondary market, a trend that stood out amid broader housing finance challenges.
Stasishin emphasized that, in the current climate, obtaining a mortgage under market conditions remains challenging for many borrowers. Yet the secondary market has offered a viable path for families to upgrade their homes, with flexible options that often differ from new-build programs. This shift highlights how existing properties, sometimes priced more accessibly and with shorter closing timelines, can alleviate housing pressures for households across the country.
Looking ahead, the Ministry of Construction plans to monitor housing transactions through the first half of 2024 and to intervene if problems arise. While the ministry can influence policy and market conditions, it does not control the Central Bank’s key interest rate, which plays a decisive role in mortgage costs. The balance between policy oversight and monetary policy will continue to shape how families finance home purchases in the near term.
In total, the living conditions of about 4.3 million Russian families improved last year, a figure in large part driven by the strength of the active secondary market. This growth occurred alongside ongoing activity in the broader housing sector, with buyers showing resilience even as financing conditions evolved. The year underscored a dynamic housing landscape where transactions in established properties complemented new construction to expand access to homeownership for many households.
Prior to that period, forecasts suggested continued growth in country house purchases toward March, a signal of sustained interest in more spacious living arrangements. Analysts noted that buyers were reassessing their housing needs amid changing mortgage possibilities and shifting incentives in the housing market. Although discounts for flat buyers were not widely offered, buyers remained focused on securing favorable terms through a combination of stable prices, reasonable mortgage rates, and the convenience of established properties that meet family needs without the wait times often associated with new construction.