The average price per square meter in Russia’s secondary real estate market has surged, effectively doubling over the last five years. This summary, drawn from Interfax with data attributed to Cyan.Analytics, highlights a marked shift in property values across both major urban centers and smaller towns.
Analysts point to the trajectory observed during 2020 and 2021 as the main driver behind the broad-based rise. While every city reported growth, the pace and scale varied, reflecting local market dynamics, regional economic conditions, and evolving buyer preferences that favored housing investments during the pandemic period and beyond.
Among the cities, several locales stood out for the sharpest increases. Kislovodsk and Derbent showed the most pronounced moves, with secondary-market prices rising more than threefold over the five-year horizon. Other municipalities also posted substantial gains, including Noyabrsk, Nizhnekamsk, Norilsk, Kyzyl, and Maikop, where values climbed by more than two and a half times, signaling a broad pattern of demand pressure and constrained supply in many regional markets.
In contrast, a number of towns experienced only modest adjustments. Rubtsovsk, Zlatoust, Nizhnevartovsk, Yuzhno-Sakhalinsk, Salavat, and Khanty-Mansiysk all saw increases that did not exceed fifty percent, illustrating how regional disparities can shape outcomes even within the same country and market segment. These pockets of slower growth may reflect local development cycles, affordability considerations, and the interplay of local employment trends with housing demand.
For municipalities with populations over a million, the trend was especially pronounced. Chelyabinsk and Omsk recorded the steepest price escalations in the secondary market, each rising by roughly 2.3 times over the observed period. This reflects the concentration of economic activity, large labor markets, and the enduring appeal of these cities to buyers seeking established urban environments with diversified amenities.
Meanwhile, Moscow and St. Petersburg, along with Ufa, did not follow the most aggressive growth paths but still demonstrated meaningful appreciation. Moscow rose by about 36 percent, while St. Petersburg and Ufa both posted increases around 67 percent, underscoring that even large, mature markets continued to experience upward pressure, albeit with different dynamics and pacing compared to smaller regional centers.
These shifts in secondary-market pricing must be understood against the broader housing market backdrop, including new construction activity, mortgage accessibility, and macroeconomic factors that influence buyer confidence. The reported increases imply sustained demand for housing assets, with investors and owner-occupiers recalibrating expectations and seeking durable value in a landscape shaped by demographic trends and policy developments.
In January, reports indicated that apartment prices on the secondary market in Moscow reached a three-year high, signaling renewed vigor in demand for existing stock. This milestone aligns with other indicators of price resilience across the major urban centers, where buyers appear willing to pay premium rates to secure housing in locations with established infrastructure and services. The pattern suggests a continuing cycle where existing housing stock remains a critical component of wealth accumulation and shelter, particularly in metropolitan hubs.
Looking ahead, economists have been predicting further adjustments in housing prices for 2024, driven by ongoing shifts in affordability, lending conditions, and regional development policies. While forecasts vary, the consensus is that price movements will continue to reflect a mix of regional heterogeneity and nationwide trends, with some markets cooling while others retain momentum due to persistent demand and supply constraints.