Prices for new buildings have decreased in Russian megacities

Samara, Rostov-on-Don and Krasnoyarsk were among the three leaders in reducing the average price per square meter of primary housing among Russian megacities, the federal company "Floors" said.

"In general, in Russia over the past month, the average cost per square meter of apartments in new buildings showed zero dynamics, this is one of the indicators that competition for buyers among developers is getting stronger, and supply exceeds existing demand," explained Alexander Ivanov, a leading analyst at the federal company Floors.

According to the experts of the company "Floors" over the past month, the average cost per square meter of housing in the primary market decreased in Samara (-1.8%), Rostov-on-Don (-1.4%) and Krasnoyarsk (-1.1%). Weak growth dynamics was noted in Chelyabinsk (+0.1%), Volgograd (+0.3%), Omsk and Ufa by 0.4% and Yekaterinburg (+0.5%). The most noticeable growth was recorded in Perm (+3%), Novosibirsk (+2.2%), Nizhny Novgorod and Moscow (2% each) and Kazan (+1.9%).

"The actual sale prices of apartments are often lower than stated, because in competition for a buyer, developers are ready to make discounts and offer individual conditions, which can be expressed both in price reductions and various options for subsidies and installments," Ivanov continues.

According to the expert's forecasts, the season of sales in the primary housing market in Russia this year may come earlier than noted in previous years, especially if the next meeting of the Central Bank decides to significantly reduce the key interest rate with the prospect of further easing monetary policy.

"With the increasing availability of market mortgages, it will become increasingly difficult for developers to compete with the secondary housing market, which is currently experiencing a record discount, so they will more actively attract buyers, both with a discount and special offers for a separate pool of facilities," Ivanov summed up.

Empty waiting: price growth in the primary housing market exceeded 10%

With a further reduction in the key rate, there is a risk of a jump in the cost of apartments in new buildings, experts say.

On August 28, financial market expert and economist Andrey Barkhota told Izvestia that secondary housing has fallen in price in a third of the country's regions. In the second quarter, the Central Bank recorded a decrease in the average price by 1 sq.m. m in 27 regions of the Russian Federation. The level of housing supply is sufficient to ensure that prices decrease rapidly in the face of a decrease in the number of mortgage transactions.

All important news is on the Izvestia channel in the MAX messenger.