Demand for second homes in Russia is cooling gradually as mortgage rates climb, pushing some buyers toward newly built properties. At the same time, average asking prices on the secondary market continue to rise. Market observers note that demand remains firm in certain segments even as overall activity ebbs.
Analysts tracking price movements in the country’s 18 largest regional markets report that resale costs increased by about 1.1 percent in December compared with November, arriving at roughly 137.6 thousand rubles per square meter. This keeps the secondary market on an upward trajectory, even as buyers become more selective and financing conditions tighten.
Industry executive Ildar Khusainov points to price inertia as a plausible driver for the continued rise. He explains that after a burst of activity at the end of summer and into autumn, market participants have not yet felt a decisive drop in demand, allowing prices to hold and in some places edge higher.
On the broader scale, price growth in Russia as a whole reached around 2.5 percent, with a year-over-year increase near 10.9 percent. In many neighborhoods, average listing prices on the secondary market have climbed roughly 15.5 percent since the start of 2022, driven by limited supply and ongoing demand from buyers seeking alternatives to new construction.
Market analysts highlight a moderation in activity rather than a collapse. Observers note that user engagement has declined by a modest margin in the recent month, suggesting that buyers are taking a more deliberate approach to decision making amid shifting financing conditions.
The most noticeable price uptick in the secondary segment occurred in Chelyabinsk, where prices rose about 4.1 percent to around 97.6 thousand rubles per square meter. In St. Petersburg, the average price on the secondary market rose approximately 1.3 percent month over month, reaching about 185.4 thousand rubles per square meter.
Looking ahead, analysts expect a slowdown in activity within the secondary market in the coming year. A market manager notes that the volume of transactions could fall by around 30 percent based on typical indicators. The projection also includes an anticipated price softening of roughly 10 percent in 2024 for average supply costs.
There is ongoing attention to the gap between primary and secondary market prices, with some observers warning that a widening difference could present challenges for buyers and lenders in the near term. Still, there is cautious optimism that market fundamentals will adjust gradually as the year progresses.
Historically, shifts in mortgage availability and overall demand have a pronounced ripple effect across regional markets. Real estate professionals stress the importance of evaluating local dynamics, such as employment trends, urban development, and the pace of new housing completions, when assessing future price movements.
In summary, the overall environment for secondary housing in Russia shows resilience in certain cities and segments while facing headwinds from higher financing costs and shifting buyer expectations. Stakeholders continue to monitor price trajectories, transaction activity, and supply levels to gauge how the market will navigate the year ahead.
Cited market observations reflect a mix of inertia in demand and ongoing price realignment as macrofinancial conditions evolve, underscoring the nuanced nature of today’s housing landscape for buyers, sellers, and lenders alike.