The cost of new housing in Russia has increased 2.3 times in five years

The average cost per square meter in the primary housing market in Russia has increased 2.3 times in five years, according to the federal company "Floors".

"In June 2020, the average price per square meter in the primary housing market in Russia was 68.6 thousand rubles, and in June of this year — 154.6 thousand rubles. The growth was 125.5%. If we compare it with the dollar exchange rate, it has grown by only 10.9% over the same period," explained Alexander Ivanov, a leading analyst at the federal company Floors.

According to Ivanov, such a significant increase in the average price per square meter explains the high investment activity in the residential real estate segment in recent years. In the period from 2020 to 2022, in the wake of low mortgage rates, the purchase of almost any real estate provided investors with income. Now real estate investments have become more difficult, and only liquid properties can generate income without risk.

The experts of the federal company "Floors" analyzed the dynamics of the average price per square meter and compiled a rating of Russian cities with a million inhabitants with the most significant growth.

Omsk took the first place, where the average price per square meter in the primary market increased 3.4 times over the five-year period, to 152.1 thousand rubles. Nizhny Novgorod is in second place, where it has tripled to 206.1 thousand rubles. Krasnodar is in third place with an increase of 2.8 times, to 162.7 thousand rubles. The fourth place was shared by four cities at once, where the price increased 2.6 times - Perm, Chelyabinsk, Samara and Rostov-on-Don. Kazan ranks fifth with an increase of 2.4 times. At the same time, Moscow showed the weakest growth dynamics among Russian megacities: in the capital over the same period, the average price per square meter of housing in new buildings increased by only 87.3%.

"The growth dynamics of the average price per square meter is influenced by many factors, from inflation and changes in construction costs to land prices, the balance of supply and demand in a particular regional market, purchasing power, and the availability of integrated territorial development programs, so the dynamics in some cities is higher than the Russian average. Over the past year, against the background of limited demand, price growth has become more restrained and the average in Russia does not exceed 15%," Ivanov summed up.

The price of freedom: how does early repayment of a mortgage work?

Only 5% of citizens can afford it.

Analysts at Yandex Real Estate told Izvestia that the median cost of private homes in regions with cities with millions of residents increased by 12.4% over the year. A significant increase was recorded in the Republic of Bashkortostan and the Omsk Region, while a slight decrease was recorded in the Chelyabinsk Region and the Krasnodar Territory. It was noted that the highest median prices per square meter were recorded in Moscow and the Moscow region (115 thousand rubles), the Krasnodar Territory (96 thousand rubles), St. Petersburg and the Leningrad Region (88 thousand rubles).