Prices for new buildings are rising against the background of a fall in demand

Despite a sharp decrease in demand, new buildings in Russian millionaire cities have risen in price by more than 12%over the year. This is explained by the desire of developers to transfer the increased costs of construction and a change in the structure of the offer into the cost of housing. The increase in prices, in turn, scares away customers, stimulating them to postpone transactions before stabilization of prices.

In April 2025, the average cost of new buildings in Russian millionaire cities amounted to 185 thousand rubles. for sq. m, increasing by 12.8% year by the year, they calculated in Yandex Real Estate. According to Cyan. Analytics, in mid -April, the indicator was 187.7 thousand rubles. for sq. m, the increase of the year by the year amounted to 12.1%. In Moscow, the value increased by 15.2% per year, to 403.1 thousand rubles. for sq. m. in St. Petersburg-by 11.5%, up to 274.9 thousand rubles. for sq. m.

Prices are rising, despite the reduction in primary housing sales.

According to Dataflat.ru, in Moscow and the Moscow Region in April 2025 10.9 thousand shared participation agreements (DDU) were concluded. A year by the year, the indicator decreased by 12%. In St. Petersburg and the Leningrad Region, the number of DDU in March decreased by 34% by the year, to 3.9 thousand. The director for mortgage sales A101 Rustam Azizov says that in general, the demand in the primary market in the first quarter was reduced by 30% a year by the year. The trend has been traced from the second half of last year due to increasing the cost of loans.

The volume of the offer of new buildings in Russia, according to Avito Real Estate in mid -April, increased by 32% a year by the year. The launch of new residential projects in Russia in January -March was reduced by 24% year by the year, to 8.1 million square meters. m, follows from the calculations « Dom.rf ».

Due to the increase in the prices of developers, according to the managing director of Metrium Ruslan Syrtsov, they strive to level the inflation and rise in the cost of project financing. According to Rosstat, annual inflation in Russia on May 5 amounted to 10.2%. Prices also reflects the growing cost of construction and labor, said Element CEO Vitaliy Korobov. According to his estimates, in 2024, various categories of building materials have risen in price by 50% of the year, and workers’ salaries were 80%.

Another factor, the commercial director of the Glavstroy Region company Alexei Artoshin considers a change in the structure of the proposal: new projects are often represented by the housing of a high price segment. The proposal of business class apartments in April increased by 6.8% compared to March, an elite-by 11.1%, they say in Yandex Real Estate. Taking into account the reduction in the release of new projects, the average cost can also increase by increasing the share of housing in the later stages of sale, says Leonid Savkov, deputy general director of MR Group.

Developers try to stimulate demand due to sales according to the state program “Family Mortgage” and their own installments, says Mr. Korobov. The share of the latter in the portfolios of developers, according to the Central Bank estimates, reaches 20%. Earlier, the Central Bank warned of the risks of the scheme, speaking in favor of its regulation. In the future, this can lead to a decrease in demand, not excluded in the « Glavstroy ».

Unikey Managing Partner Aigul Yusupova believes that the rise in new buildings will continue by increasing the costs of developers. This, in turn, stimulates buyers to postpone the transactions, waiting for price stabilization, says Evgeny Sugrobov, deputy residential real estate department of RICCI. In such conditions, in such conditions, according to the Developa partner, Peter Barsukov, will continue to reduce the rate of launch of new projects, concentrating on the sales of the existing offer.

Sofia Meshkova