The average size of second homes purchased by Russians in 2023 dropped to levels reminiscent of the 1990s, a shift highlighted by the publication Lenta.ru based on a study conducted by the federal firm Etazhi. This change fits into a broader trend where the appeal of compact living spaces dominates a market once defined by larger, more expansive properties. The latest figures show how demand and preferences have evolved as economic conditions factor into decisions about where to live and how much space to consider essential for daily life.
The footprint of secondary housing, popular among Russian buyers, has gradually narrowed over several years. By the close of 2022, the typical size hovered around 48.7 square meters, and earlier in 2015 the average was about 54.3 square meters. For context, in 1995 the average was 47.7 square meters. These numbers illustrate a clear long-term drift toward smaller units, a pattern that reflects shifts in income, mortgage dynamics, urban density, and the perceived value of space in modern living.
Prices play a decisive role in this evolution. Compact real estate commands substantially lower costs than larger apartments, making smaller units an appealing option for both investment and daily living. In recent years there has also been a noticeable move toward mini and micro studios, viewed by many buyers as practical, low-cost opportunities to own property or to diversify an investment portfolio in uncertain times. This price-driven affordability helps explain why smaller configurations remain attractive even when buyers weigh long-term needs against upfront expenses.
Market experts anticipate that the preference for smaller living spaces will persist in the near future, influenced in part by higher mortgage rates that constrain borrowing and adjust expectations about what kind of housing delivers the best balance of cost, comfort, and potential appreciation. When financing costs rise, some buyers turn to more modest footprints that still offer functional layouts and the conveniences of city life, all while keeping monthly payments within reach. This dynamic reshapes demand patterns and nudges developers toward compact, efficient designs that appeal to a wide spectrum of buyers and renters alike.
In related policy developments, the Bank of Russia indicated that the mortgage program administered through DOM.RF might see a broadened support framework. The prospect involved potentially expanding the ceiling on preferential lending for banks that do not levy commissions on developers, a move designed to ease credit access for certain projects and stimulate activity in the housing sector. This kind of policy adjustment can influence the affordability calculations that households perform when choosing between larger estates and smaller, more economical options. It also signals a wider willingness among authorities to experiment with incentives that support property acquisition and development amid shifting economic conditions.
Looking at the bigger picture, observers note that 2024 brought a set of key considerations for Russian borrowers and market participants. While the specifics of any policy changes can affect repayment expectations and the ease of securing financing, the prevailing trend remains clear: demand for smaller housing choices is likely to stay robust as buyers adapt to evolving financial realities, urban living demands, and the practical appeal of efficient spaces. The combination of price sensitivity, mortgage dynamics, and strategic investment thinking continues to shape how families and investors weigh the value of different housing configurations in a changing market environment.