Russian New-Flat Demand and Price Trends in January 2023

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January 2023 saw a notable shift in the Russian housing market as demand for new flats rose by 8.6 percent compared with December of the previous year. This trend emerged from a report by the newspaper Kommersant, which cited statistics provided by Avito-Nedvizhimost. In tandem with higher interest from buyers, average prices for new flats eased slightly, dropping by 1 percent in the period under review. The combination of rising demand and modest price relief painted a picture of cautious buyer activity amid evolving market conditions.

Despite this uptick in monthly demand, the early months of 2023 did not bring demand levels back to those recorded at the start of 2022. According to the same statistics, demand for new apartments in January 2023 stood at 35.9 percent of the level observed a year earlier, indicating that the market was still recovering from the slower period experienced in 2021–2022. This gap underscored the uneven pace of revival across different segments and regions, suggesting that many buyers remained selective about location, size, and price points. [Avito-Nedvizhimost]

Regional patterns showed a clear tilt toward larger living spaces within the January 2023 demand profile. Avito-Nedvizhimost reported that interest in multi-room homes surged, with four-room apartments drawing the strongest attention, up by 17.3 percent. Three-room residences followed with an 11.8 percent rise, and two-bedroom units gained 12.4 percent in demand. In contrast, one-bedroom apartments and studio formats attracted relatively less interest, with studios experiencing a 6 percent uptick, a modest 1.3 percent increase compared with prior levels. The popularity of bigger configurations reflected a preference for more versatile living setups among buyers during this period. [Avito-Nedvizhimost]

Looking at the geographic spread, residents of Bryansk, Omsk, Kazan, Sevastopol, and St. Petersburg emerged as particularly active in January. In these regions, demand for new flats rose by about 26 to 34 percent. Moscow, meanwhile, saw a different dynamic, with demand in the capital pulling back by roughly 5.2 percent over the same timeframe. The shifting regional balance highlighted how affordability considerations, local job markets, and transportation links were shaping buyer choices in the early months of 2023. [Avito-Nedvizhimost]

Price movements within the new-build sector mirrored the mixed demand picture. Avito-Nedvizhimost recorded a slight decline in per-flat prices in January 2023, down 0.9 percent from December. Yet, year-over-year comparisons showed an overall upward trajectory, with prices in January 2023 higher than those a year earlier by about 6.5 percent. Regions outside the capital also posted gains, with notable price increases in cities like Sochi, Stavropol, Krasnodar, and Volgograd. Conversely, some locales such as Sevastopol, Nizhny Novgorod, and Saratov experienced softer pricing, with prices sliding in those markets. These divergences underscored the ongoing regional disparities in supply, demand, and cost structures across Russia. [Avito-Nedvizhimost]

When identifying the markets with the most expensive new apartments in January 2023, Moscow, Sochi, and St. Petersburg consistently topped the list. The average price for a new-build home in Moscow reached around 14.2 million rubles, a similar figure reported for Sochi, while St. Petersburg posted an average near 8.7 million rubles. These price levels reflected the premium placed on metropolitan conveniences, proximity to business centers, and the allure of coastal and cultural hubs. The data illustrated how urban centers continued to command higher price points even as other regions showed pockets of growth in both demand and listing costs. [Avito-Nedvizhimost]

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