Prices for apartments in Moscow are declining faster than in the suburbs

Apartments in Moscow, located within the Moscow Ring Road, continue to get cheaper. In August, the fall was 1.1%. In the TiNAO and the Moscow region, the price reduction is quite insignificant, and residential real estate within the boundaries of old Moscow behind the ring road and in the far suburbs even showed a slight increase in prices in August.

Experts have been observing price reductions in the secondary housing market in Moscow for several months now. Yes, according to the think tank irn.ru, over the past four months, sellers have reduced prices by an average of 4.5%. And in the process of bargaining with real buyers, the final amount of the transaction may be lower than requested initially by 10-15%.

The average cost per square meter in the secondary housing in Moscow in August amounted to 259,600 rubles.

The largest price reductions were shown by apartments in panel houses and so-called stalinkas – 1.8 and 1.5%, respectively. Also, three-ruble bills and multi-room apartments fell in price most of all – a decrease in August amounted to 1.4%.

But the dynamics of prices by districts can be traced not so clearly.

“The entire market is overheated and overvalued, expensive and democratic locations are present both among the leaders and outsiders of the geographical rating,” irn.ru analysts say.

Average prices for apartments in Moscow (in rubles per m2)*

* According to IRN.ru. The table does not take into account prices for luxury housing and non-standard apartments.

As for the areas of the Moscow region located outside the Moscow Ring Road, here the rate of price reduction in August fell to a minimum, experts say. So, in the secondary market, the average price per square meter of residential real estate in TiNAO in August amounted to 202,200 rubles, and in the Moscow region – 152,100 rubles.

Average prices for apartments outside the Moscow Ring Road within the Moscow Region (in rubles per m2)

Experts explain the decline in housing prices both by the general overheating of the market and by a significant increase in offers – in August alone, the number of apartments offered for sale on the secondary market increased by 20-25%. However, the demand for housing remains low: on average, it is 40% lower than last year.

All this suggests that the traditional autumn activation of the market and, accordingly, price growth should not be counted on. On the contrary, according to analysts, most likely, by the end of autumn, the fall in housing prices will become even more intense.

Alena Bodrienko.

A photo mos.ru