Russia’s New Housing Market Shows Price Stabilization Amid Regional Variances
A recent assessment from Sergey Zaitsev, head of sales at the federal enterprise Etazhi, highlights a noteworthy shift in Russia’s new housing landscape. For the first time since mid-2022, average prices for newly built apartments have softened. Over the past month, the typical price per square meter decreased by about half a percentage point, suggesting a period of stabilization after a lengthy phase of rapid price growth. This trend was observed in market coverage published by a major national newspaper’s online platform.
Across the country’s largest urban hubs, price adjustments were most evident in Moscow, where the decline approached 0.8 percent. Other cities registering meaningful reductions include Perm at roughly 0.7 percent, Kazan near 0.5 percent, Krasnodar at about 0.4 percent, and Tyumen around 0.4 percent. These movements point to regional diversity in pricing dynamics, driven by local demand conditions, development pipelines, and economic activity that can diverge from city to city. Zaitsev noted that even with the month-over-month dip, the average price per square meter for new constructions still rose by approximately 3.7 percent when measured against the same period in the prior year. The broader inflationary context shows substantial gains over the longer horizon: prices increased by 22.6 percent in 2022 and by 33.6 percent in 2021, underscoring a multi-year uptrend that is now showing signs of cooling in the latest data.
Yana Glazunova, the chief executive officer of VSN Realty, observed that in larger cities preliminary indicators point to a softer trend in the primary market, with price movements lingering near a one-percent decrease. These notes align with a wider narrative of cooling demand and more cautious purchasing behavior as buyers reconsider affordability and financing amidst evolving market signals.
In related news, a Supreme Court decree was issued to clarify protections for mortgaged properties. The ruling seeks to prevent the confiscation of pledged real estate when a borrower experiences a minor delay in mortgage payments. The decision reflects a balancing act between lenders’ interests and borrowers’ financial distress, particularly in scenarios where delays are modest and the collateral’s value remains intact.
Industry expert Vladimir Gruzdev, who chairs the board of the Russian Bar Association, explained that the decree defines a minor violation as a delay of less than five percent of the pledged amount and lasting no more than three months. This threshold provides a clear framework for assessing borrower responsibility and the consequences of late payments, helping to reduce the risk of automatic foreclosure in borderline situations.
Market observers are also watching the central bank’s latest communications, especially the potential adjustment to the core policy rate. Traders and analysts anticipate how any move could affect lending terms and buyer demand, with a focus on mapping the path for mortgage costs, affordability, and overall market momentum in the near term.