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Prices on the secondary real estate market have stopped growing in Russia’s millionaire cities

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Since the beginning of May 2022, in almost all cities of Russia with a population of more than a million people, prices for residential real estate in the secondary market have ceased to noticeably increase. The only exception was Rostov-on-Don, where the average cost per square meter of housing for a month and a half rose immediately by 5.5%.

About this on Thursday, June 23, reports “Lenta.ru” with reference to data from one of the federal real estate databases. Analysts have calculated that in Moscow, St. Petersburg, Kazan and Chelyabinsk, housing prices on the secondary market went down. In the capital, the average price per square meter has decreased by 3.2% since the beginning of May. In St. Petersburg, housing on the secondary market has become cheaper for the third month in a row, but the decline is insignificant – 1% in a month and a half.

In Volgograd, Yekaterinburg, Nizhny Novgorod, Krasnoyarsk and Perm, the average prices per square meter of housing on the secondary market have not changed since the beginning of May. In Voronezh, Krasnodar, Novosibirsk, Samara and Ufa, there is a slight increase in prices within the statistical error.

The dynamics of prices is influenced by high rates on mortgage loans for secondary housing, experts say. They led to a drop in demand for housing. “More attractive mortgage rates take the client away from the ready-made housing market to new buildings, but where there are relatively few of the latter, this trend is not yet so obvious,” Andriy Dobry, head of the real estate database, believes.

In April, the government announced that the program of preferential mortgages can be extended to the secondary housing market. Such a decision can be made if measures to promote the acquisition of apartments in new buildings are not enough.

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