Apartments prices in Russia will rise

One of the prerequisites for price increases is a reduction in the number of offers on the secondary housing market.

The volume of real estate transactions in Russia in 2019 will decrease by 10–15% compared with 2018, and house prices will increase by 3–8%. Such a forecast is contained in the analytical review provided by the regional real estate company “Etazhi”.

One of the prerequisites for rising prices is a noticeable reduction in the number of offers on the secondary housing market. This year Moscow “lost” about 7 thousand objects, in Perm the supply decreased by 15%, and in Yekaterinburg – by 10%, analysts of the company note.

However, regional specifics are very strong in Russia: housing prices in Moscow and the Far East may differ by six to seven times, experts explain. Therefore, the prospects for the real estate market will be very dependent on regional conditions: the number of jobs, the social policy of the regional administration and the volume of building permits issued according to the old rules.

In the capital, for example, a shortage of offers is not expected. Currently, Moscow has issued building permits for 18.75 million square meters of housing, only 3.21 million of which are in the exposition. With an annual sales level of approximately 2.5 million square meters of approved projects will last for seven years, so the apartments price and demand will depend on the income level of consumers, analysts summarize.

In St. Petersburg, compared with the average Russian indicators, there is still a high demand for housing. Growth in real estate prices in the northern capital and the region is stable, and in the outgoing year the increase was a record for five years, overtaking the all-Russian level, the survey says. In 2019, an apartment square meter in new development could cost 113.7 thousand rubles, and the expected price of a square meter on the secondary market will reach almost 120 thousand rubles.

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