In Russia, at the beginning of 2024, the cost of new buildings in the mass segment and business class may decrease, Managing Director of the Metrium company Ruslan Syrtsov told Izvestia. Secondary housing will also slowly fall in price, he predicted.
“I believe that at the beginning of 2024 there will be a slight downward correction, mainly due to the discount in prices for new buildings in the mass segment and business class. This is probably how developers will react to the sharp tightening of preferential mortgages. However, the price decline, in my opinion, will not last,” the expert said.
According to him, developers will be able to introduce their own convenient marketing tools, in particular, tranche mortgages and interest-free installments, which will restore demand to almost previous levels. In addition, purchasing activity will be fueled by expectations of tightening conditions for family mortgages and other targeted programs, he added.
“The primary market for premium and luxury housing is practically independent of mortgages, so high-budget housing will continue to rise in price, at least at the level of inflation. In turn, secondary housing will slowly become cheaper until the key rate is reduced by 10–12%,” says Syrtsov.
The expert drew attention to the fact that currently there are favorable conditions for purchasing housing in a new building in order to save money against the backdrop of economic uncertainty.
“It is advisable to buy secondary housing only with cash, without using borrowed funds. I believe that extreme market rates will last at least a year, which is fraught with large overpayments on loans even taking into account subsequent refinancing,” concluded Syrtsov.
Earlier, on December 9, 2023, it was reported that the cost of new buildings in Russia increased by 8% over the year. As stated in the results of a study by the Avito Real Estate platform, the most expensive apartments on the primary market are located in Moscow (an average of 16.3 million rubles), Sochi (11.8 million rubles) and Nizhny Novgorod (9.1 million rubles).
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