The secondary real estate market in Russia

The secondary real estate market in Russia

Alla Shinkevich, CEO of the Nevsky Prostor real estate agency, spoke about the current situation in the secondary real estate market in Russia. In 2024, there is a steady increase in prices, despite a decrease in the number of transactions and high interest rates. Buyers behave rationally, and marketable real estate objects quickly find their owners.

«— There are interesting trends in the secondary real estate market in Russia in 2024. One of the key factors influencing the current situation is the cancellation of government support and an increase in interest rates. This led to a decrease in the number of buyers for new buildings, which, in turn, affected the secondary housing market.

Despite the decrease in the number of transactions, real estate prices show steady growth. If we compare with last year, we can see that the current prices are 10-20% higher. This growth is smooth, which is typical of the real estate market, where prices fluctuate regularly. Even during periods of recession, prices remain higher than in previous years. Now we are in one of these "pits", but this "pit" is still 10% higher compared to the same period last year. Thus, there is no need to talk about some kind of catastrophic price drop. Rather, we can talk about price adjustments and more active bidding by sellers.

Liquid properties continue to find their buyers quickly. An example is the recent sale of one-room apartments in Sestroretsk for 2 million rubles. Despite the current economic conditions, the buyer was found in just two weeks. This shows that there is still a demand for attractive offers in the market. At the same time, objects with high competition in the market are more difficult to sell, and their owners often have to lower the price in order to attract buyers.

Buyers today behave extremely rationally: they choose, price and often postpone the purchase. Mortgage loans, despite high interest rates, remain a popular tool for financing home purchases. This is especially true for those who plan to sell their property in another city or move to new housing in the near future. In such cases, a short–term mortgage – from six months to two years - does not look so burdensome. The main thing is that buyers have a clear plan to repay the loan in a short time in order to avoid long-term overpayments, which can reach the cost of several apartments.

The current situation in the secondary real estate market is characterized by a decrease in the number of transactions, price correction and active bidding. Buyers keep choosing the best options, and deals still happen. Autumn is ahead, traditionally an active season for the real estate market, and we can expect a new round of activity. A strong decline in prices is not expected, as interest in real estate remains high, and seasonal fluctuations will continue» .

Source: www.kvmeter.ru

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