The Moscow region saw the price of the primary housing per square meter set at 260.3 thousand rubles at the start of January 2023. This assessment comes from the analysts at Cyan.Analytics as reported by Lenta.ru.
In 2022, the market noted a 6.5 percent rise in square meter prices for such homes. The growth pace, however, reached 28 percent in 2021, signaling a strong upward trajectory across recent years.
Regarding discounts on primary real estate in the Moscow region, the end of December 2022 showed an average discount of about 10 percent. Overall, roughly 28 percent of all apartments listed for sale in late 2022 carried a discount, with the largest shares appearing in Old Moscow where discounts approached 39 percent.
During the second half of December, Sergei Zaitsev, the head of sales at the federal company Etazhi, commented on the impact of the presidential decision to extend the preferential mortgage program through July 1, 2024. With the extension, the mortgage rate rose to 8 percent, and developers paused further discounting to adjust pricing strategy.
Recent RBC coverage, citing NedVex data, noted activity in 2022 where luxury real estate purchases in Sochi totaled 25.2 billion rubles, a figure that marked a 40 percent increase over 2021.
These trends illustrate a market that continues to evolve under policy shifts and shifting consumer demand. The price per unit area in the Moscow region reflects ongoing adjustments in both new construction pricing and the broader affordability dynamics that influence buyer behavior. Analysts point to a combination of macroeconomic factors, regional development plans, and financing terms as key drivers shaping the trajectory of primary housing costs.
From the perspective of buyers, the environment remains nuanced. While price growth has moderated in some segments, the occurrence of discounts still plays a meaningful role in negotiating transactions, particularly where developers balance liquidation risk with market appetite. The existence of substantial discounts in Old Moscow may indicate persistent competition among developers to attract buyers to historically premium districts.
On the financing front, the extension of the preferential mortgage program creates a window of opportunity and risk. The 8 percent rate cap under the extended program provides some stability for borrowers, yet the pause in additional discounts suggests sellers are recalibrating expectations in response to the new financing framework. For potential purchasers, this period may offer a measured approach to locking favorable financing while monitoring shifts in listings and incentives.
Looking at the luxury segment, the Sochi market demonstrated notable strength in 2022, with substantial year over year gains. This pattern underscores how regional luxury assets respond to broader economic signals and investment sentiment, alongside unique local demand drivers.
Overall, the Moscow region primary housing market remains responsive to policy measures, discount dynamics, and evolving buyer priorities. In the near term, investors and homebuyers alike will likely weigh price movements against financing opportunities, urban development plans, and the expected trajectory of inflation and interest rates. The balance between price growth and affordability will continue to shape buyer participation and seller pricing strategies as the market navigates these complex forces. [Cyan.Analytics via Lenta.ru] [NedVex data via RBC reporting]