Demand for apartments in new buildings has collapsed in Russia

Demand for apartments in new buildings has collapsed in Russia

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Demand for apartments in new buildings has collapsed in Russia

In the second quarter of 2021, the demand for apartments in buildings under construction fell on average by 15 percent in Russia compared to the level of the first quarter. This is reported by “Izvestia” with reference to the study of the real estate base “Avito”.

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Demand for apartments in new buildings has collapsed in Russia

Nevertheless, according to analysts, the cost of apartments compared to the same period in 2020 increased by 33 percent. Experts note that the demand for housing decreased due to the extinction of the apartment rush last year, in addition, the lack of growth in household incomes contributed to its decline.

The weakening of demand was also influenced by a strong increase in prices for apartments in new buildings. Over the last quarter, price tags increased by another 9 percent, according to Avito. Experts believe that the market for new buildings has stabilized: “demand has leveled off to the levels of last year, which created the preconditions for a slowdown in the rate of price growth”.

Earlier, Russians were advised to rush to buy apartments. The vice-president of the International Academy of Mortgage and Real Estate, Irina Radchenko, said that in 2021 their acquisition is no longer as profitable as in 2020, because over the past year, prices for residential real estate increased by 20 percent on average in the country.