The rise in housing costs for newly constructed buildings in Russia, along with the growing gap between prices per square meter in the primary and secondary real estate markets, is tied to a set of objective factors. This view was shared by Deputy Prime Minister Marat Khusnullin during a press briefing.
He argued that a clear separation between new and resale homes should be the standard. He asked why older housing should be priced the same as brand new residences, noting that construction costs have climbed for measurable reasons. The government is offsetting part of this increase by offering mortgage support and other measures to buyers.
Khusnullin pointed to several drivers behind higher new-build prices. The exchange rate movements, together with rising costs for labor, energy, financing, and construction materials, all contribute to the upward trajectory in new housing costs.
According to Khusnullin, the cost of financial services tied to each additional square meter typically ranges from five to fifteen percent. He also noted that the price per square meter includes expenses related to building out the infrastructure surrounding new projects.
Alexander Danilov, who heads the Banking Regulatory and Analytical Department at the Central Bank of the Russian Federation, commented on November 29 that the gap between primary market prices and secondary market prices has widened substantially. A few years ago, primary market prices were roughly ten to fifteen percent higher than those in the secondary market; today, the spread has grown to about forty percent. Danilov added that the overpricing belongs to a band roughly twenty to twenty-five percent in magnitude.
The regulator highlighted that the widening differential signals overheating in the mortgage market. In light of this, market watchers ask what consequences might follow, with local media outlets and industry analysts weighing potential outcomes for borrowers and lenders alike.
Earlier discussions in Russia have questioned whether the real estate cycle is cooling or accelerating, and policy responses continue to emphasize price discipline, targeted mortgage schemes, and improved lending standards to prevent a rapid loss of affordability in the housing sector.
Overall, experts say the price gap between the primary and secondary markets reflects structural shifts in supply, demand, and financing terms. For buyers, this means careful consideration of when to purchase, how to finance, and what to expect from future price movements as inflationary pressures and rates stabilize. Authorities continue to monitor these dynamics closely to balance growth with stability in the housing market.