In the first quarter of this year, demand for new buildings in Russia rose by 4.8 percent compared with the previous quarter, while the supply of new developments expanded by an average of 49.9 percent over the year, according to the Avito Real Estate service’s press release.
Data from the report show notable regional momentum. Demand grew most sharply in Omsk, Sevastopol, and Kazan, increasing by 50.8 percent, 42.3 percent, and 33.8 percent respectively in the first quarter. In contrast, Moscow saw the most pronounced quarterly decline in demand, down by 37 percent. The release also notes the distribution of buyer interest across property types: about 19.3 percent of visitors were looking at free planned properties, 12 percent at multi-room apartments, 6.2 percent at two-room units, 4.7 percent at one-room apartments, and 0.3 percent at three-bedroom options and studios, as reported by the service.
Commenting on these shifts, Dmitry Alekseev, head of the primary real estate division at Avito Real Estate, attributed the demand surge for new buildings in January through March largely to the continuation of preferential mortgage programs. While mortgage rates have been rising, developers have continued to subsidize rates and provide discounts, contributing to sustained buyer interest in new developments.
From the service’s perspective, the average price per square meter for new constructions nationwide increased by 0.5 percent in the January-March period. The largest regional uptick occurred in Krasnodar, where prices rose by 12.9 percent, while Sevastopol experienced the sharpest decrease, with a drop of 8.7 percent. These movements reflect a complex mix of local market dynamics, including supply availability, regional economic conditions, and mortgage policy responses that influence buyer behavior across Russia.
Regarding policy context, the presidential administration announced the continuation of the preferential mortgage program at an 8 percent annual rate, effective through July 1, 2024. The rate was raised by a single percentage point, and the program—introduced in spring 2020 to support housing growth—remained a key driver for new-build demand. The program sets a maximum loan amount of 12 million rubles, shaping the affordability landscape for purchasers of new homes in the current cycle.
Analysts note that the combination of subsidized financing and regional price adjustments is contributing to a dynamic market where developers balance discounting with inventory turnover. Homebuyers are uncovering more options in emerging markets and regional hubs, even as price movements vary from city to city. The evolving mortgage framework continues to influence buyer planning, with the expectation that flexibility in financing will sustain activity in the near term, particularly in markets where supply is expanding rapidly and competition among developers remains intense.
Overall, the early-year picture points to a cautious but active trend toward new-build acquisitions. While some areas register stronger demand than others, the interplay between mortgage policy, price adjustments, and regional development pipelines appears to be shaping the trajectory of Russia’s residential construction and sales in the months ahead. (Avito Real Estate press service)