Growth in the cost of new buildings slowed down in Russia

According to the service "Yandex Real Estate", according to the results of 2024, the average cost of 1 sq. m. in the primary market in cities with a million inhabitants increased by 13.5% and reached the mark of 174 thousand rubles.

At the same time, the annual growth rate compared to 2023 decreased by 2.4 pp. In the previous period (December 2023 to December 2022), the annual increase in value amounted to 15.9%. The slowdown in the annual growth rate in 2024 is due, among other things, to the completion of the mass discounted mortgage program and the adaptation of developers to new market conditions.

A noticeable increase in the median price of square meters on the primary market during the year was recorded in Yekaterinburg (+18.7%, up to RUB 160 thousand per 1 sq. m.), Kazan (+13.9%, up to RUB 223 thousand per 1 sq. m.), Moscow (+12.1%, up to RUB 364 thousand per 1 sq. m.) and Voronezh (+11.7%, up to RUB 128 thousand per 1 sq. m.). In other megacities the annual dynamics of the cost per meter of ready housing was in the range from 1.6% to 9.7%.

At the same time, in December of the current year, the average cost per square meter of primary real estate increased by 1% as compared to the last month in Russian million-strong cities. Such dynamics is explained by the introduction of more expensive business and elite class objects to the market, as well as apartments with a smaller area - studios and one-bedrooms, the cost per square meter in which is traditionally higher. Compared to 2023, the monthly growth rates have also decreased. In December last year compared to November, the increase in the median price of a "square meter" was 1.3% on average in million-strong cities.

In December 2024, a slight decrease in the median price of a "square meter" compared to November is noted in Chelyabinsk (-2.1%, to 161 thousand rubles per 1 sq. m.), Nizhny Novgorod (-1.6%, to 180 thousand rubles per 1 sq. m.), Moscow (-1.6%, to 364 thousand rubles per 1 sq. m.) and Rostov-on-Don (-0.1%, to 145 thousand rubles per 1 sq. m.).

"Demand in the market of new buildings in 2024 remained stably high, despite the end of preferential mortgages in the middle of the year, We noted that changes in price dynamics by the end of the year showed a slight cooling compared to 2023. The average growth in the cost of a meter by 13.5% was within the inflationary expectations of the population, which indicates the regularity and market formation of prices for new buildings. At the same time, in the second half of the year we recorded a decrease in the growth rate of the median cost per square meter in the primary market in some cities with a million residents. This is due to an increase in the number of special offers from developers, more dynamic changes in the supply, and the launch of objects of different formats and classes. Developers and buyers in the primary market are finishing the year in the process of adaptation to the new macroeconomic conditions. At the same time we expect a slight decrease in the cost of new buildings at the beginning of next year, which will support demand in this segment", - explained "Izvestia" commercial director of "Yandex Nedvizhimosti" Evgeny Belokurov.

The volume of supply on average in million-strong cities from December 2023 to December 2024 increased by 5%.

The volume of available offers in December this year increased in nine of the 16 million-strong cities. The most noticeable increase in the base is recorded in Nizhny Novgorod, Moscow, Kazan, Yekaterinburg and Voronezh - from 4.7 to 16.4%.

The cities with the most expensive square meters on the primary market remain Moscow (-1.6% for the month, up to 364 thousand rubles per 1 sq. m.), St. Petersburg (+1.5% for the month, up to 250 thousand rubles per 1 sq. m.), Kazan (+0.2% for the month, up to 223 thousand rubles per 1 sq. m.) and Nizhny Novgorod (-1.6% for the month, up to 180 thousand rubles per 1 sq. m.).

In 2024, more than 19.5 million square meters of new housing will be commissioned in Russian million-strong cities. According to this indicator, the current year will repeat the volumes of commissioning, which were recorded in megacities for the whole 2023. The top five leading cities in terms of commissioning in 2024 include Moscow (6.6 million square meters), St. Petersburg (3 million square meters), Krasnodar (2.2 million square meters), Yekaterinburg (1.4 million square meters) and Novosibirsk (1 million square meters).

According to the service "Pulse of Sales of New Buildings", in November 2024, about 20 thousand share participation agreements (SPA) for almost 1 million square meters were registered in Russian million-strong cities. This is 1% higher than in October, when about 19 thousand transactions were concluded.

The leaders in terms of sales volume in the segment of new buildings are expectedly the capitals: about 7 thousand CDA were concluded in Moscow (+13% vs. October 2024), in St. Petersburg - about 3 thousand CDA (-6% vs. October). The top five most active markets also include Krasnodar (2.1 thousand CDA), Yekaterinburg (2.1 thousand) and Rostov-on-Don (about 1 thousand).

Earlier, on December 19, the experts of the platform "Avito Real Estate" found out that compared to October 2024 in November prices for apartments in new buildings in the country on average rose by 0.6%, but decreased in 18 cities of the Russian Federation. The most noticeable dynamics - in Stavropol and Samara (-7%), as well as in Krasnoyarsk, Barnaul, Ulan-Ude and Bryansk (-2%). Nizhny Novgorod, Grozny, Makhachkala, Kaliningrad, Krasnodar, Tver and Smolensk saw a 1% decrease in the average cost. In Kazan, Omsk, Simferopol, Rostov-on-Don and Tyumen, prices decreased by less than 1%. Compared to November 2023, the average cost of apartments in new buildings in the country as a whole decreased by 0.8%.