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Oct 22, 2021
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The likelihood of a collapse in housing prices in Russia is estimated


The average level of prices for secondary real estate in Russia is already very high and does not correspond to the financial capabilities of many potential buyers, said market participants interviewed by Lenta.ru. But none of them promise a collapse in price tags.

Firstly, experts say, mortgage rates remain acceptable, and secondly, there is a shortage of high-quality supply, and this supports the demand for “secondary housing”. “According to my preliminary forecasts, the average price indicators on the secondary housing market in Moscow will increase until the end of 2021, but not significantly,” promised Elena Mishchenko, head of the city real estate department at NDV-Supermarket Real Estate.

Est-a-Tet expects that “the market will move within the standard price fluctuations – within 5 percent”, without specifying the direction of movement. Director of the department of the secondary market “INKOM-Real Estate” Sergei Shloma suggested that housing “will definitely not rise in price, this is the ceiling.” According to him, the process of price reduction is still hampered only by the lack of liquid supply on the market. Valery Letenkov from the Agency for Investment in Moscow Real Estate considers it highly probable that prices for the “secondary housing” will decrease in the context of real transactions.

For more information about the dynamics of prices for finished housing at the end of 2021 and the beginning of 2022, see the material of “Lenta.ru”.

Earlier it was reported that in September 2021, realtors recorded an increase in the supply of secondary housing in all administrative districts of Moscow, but this did not affect prices. Moreover, Muscovites have cut discounts on apartments. According to the agents’ observations, the average increase in the supply volume was 3-4 percent. Most of all new objects entered the market in the South-West, North-East, East and Central districts.

Article Categories:
Economy
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