Apartment prices have soared across Russia: Moscow is an exception

Experts named the reasons for the continuous increase in the cost of new buildings

Analysts have found out what has been happening in the Russian real estate market over the past three months. Having tracked the dynamics of prices in 70 major cities of the country, they came to the conclusion: “Housing developers did not even think about lowering prices – everything is exactly the opposite!” Contrary to forecasts, the cost of housing from July to September increased in 63 cities and decreased only in seven, according to the authors of the study, specialists of the federal portal “World of Apartments.”

New buildings have risen in price most noticeably in cities with the lowest prices – developers, apparently, decided that there was still room for growth and inflated the cost of housing. The leader is Nizhny Tagil: plus 13.6%, the average cost of an apartment is 3.7 million rubles, a square meter is 68.5 thousand rubles. However, even taking into account the rise in housing prices, this city ranks last in the ranking of prices for new buildings.

In second place in terms of cost increase is Magnitogorsk: plus 13.5%, 3.2 million rubles on average per apartment and 68.8 thousand rubles per square meter. The city occupies the same second place in the overall ranking, but only from the bottom.

Chelyabinsk also distinguished itself (third place). Housing prices have risen by 12.2%; as a result, the average apartment will cost buyers 5.6 million rubles, and a square meter – 101 thousand. But Chelyabinsk, by the way, is located in the middle of the table – in 41st place.

It is impossible not to note some “cooling” of prices on the Moscow market. The cost of housing in the Russian capital has fallen by 0.3% over the past three months (a small thing, but nonetheless). But, not surprisingly, the slight price reduction did not affect the final result. Moscow was and remains the most expensive city in Russia and one of the heavyweights in the world. The average cost of an apartment in the capital is 18.7 million rubles, per square meter – 334 thousand.

Sochi, which is trying to keep up with the leader, fell 0.1%. You can buy housing in the southern capital for 12.8 million rubles, with an average cost per square meter of 349 thousand. There is a paradoxical situation: the average apartment in Sochi costs one and a half times cheaper than in Moscow, only due to the smaller square footage. In general, it turns out that the sanatorium-resort city decided to surpass the Russian capital. It is still unclear how long the desire of buyers to purchase housing at wild, without exaggeration, prices will last.

The general director of the portal, Pavel Lutsenko, explains the increase in the cost of new buildings: “Firstly, the consequences of state investment in the economy have had an impact. Secondly, the rise in the dollar/ruble exchange rate encouraged people who kept their savings in dollars to make purchases. Thirdly, in anticipation of an increase in mortgage rates, the secondary housing market has revived, which also accelerates the demand for new buildings: when selling an old apartment, Russians often buy a new one with the proceeds. And finally, developers could increase the cost of housing due to a general rise in prices and accelerating inflation.”

– Pavel, when will prices stop accelerating?

– I guess early next year. The reason is an increase in the down payment on a preferential mortgage.

It remains to add that in addition to Moscow and Sochi, prices have fallen over the past three months in Grozny (by 2.3%), in Bryansk (by 1.7%), in Volzhsky (by 1.4%), in Irkutsk (by 1% ) and in Samara (by 0.3%).