Secondary residences in Russia are anticipated to sell at notable discounts in the near term due to a softer buyer market and a growing pool of sellers. This assessment comes from Sergey Zaitsev, the Director of Sales at the federal company Etazhi, as reported by Izvestia. In the short run, owners are likely to accept reduced prices, since demand has lagged behind supply and the gap appears set to persist for now. Zaitsev noted that February could bring a boost in demand from buyers using maternity capital, a popular Russian housing subsidy program.
Currently, the typical discount on secondary-market homes sits around six percent, though many listings still aim for the highest possible price and do not reflect the downward pressure seen in actual transactions. The marketplace remains characterized by sellers who hold out for better offers, even as buyers press for concessions in price and closing conditions. In the current cycle, price reductions are most pronounced in cases where sellers need a quick sale—often to address debt obligations or to mitigate the risk of further depreciation in property values. In those urgent scenarios, discounts can escalate to the mid-20s in percentage terms, creating an incentive for buyers who can close swiftly to secure favorable terms.
Following a presidential decision to extend a state program supporting favorable mortgage rates, the market experienced a notable shift. President Vladimir Putin’s extension of the preferential mortgage scheme through mid-2024—along with a maintained rate at a reduced level—helped stabilize part of the demand side and paused further aggressive discounting by developers. In the wake of these policy moves, real estate discounts across the domestic market reached a broad range, with some listings showing sizable reductions to attract buyers in a cautious climate. The implications for buyers and investors have been mixed: while deeper discounts created opportunities for entrants, the broader market remained sensitive to interest-rate dynamics and the timing of closings. This landscape has continued to evolve through subsequent months, reflecting ongoing adjustments in purchasing power, lending conditions, and seller expectations. Source: Izvestia and statements attributed to Sergey Zaitsev, Director of Sales at Etazhi.