The expert named the conditions for lowering real estate prices in Russia

Housing prices in Russia will begin to fall only if its cost is reduced. Ilya Piskulin, the founder of the Dvizhenie real estate forum and the Creativeness development company, told Izvestia about this on June 24.

"Real estate can begin to fall in price only if the cost is reduced. Because when real estate is not for sale, it becomes more expensive every day due to the high cost of the loan," the business representative explained.

According to him, therefore, the price reduction can occur primarily due to cheaper project financing.

"It is difficult to imagine that the cost of construction materials and works will fall now, because the cost of living and staff continues to rise. Companies are only realizing the new tax regimes that have come into effect since the new year, and they are rewriting prices upward," the expert emphasized.

However, he admits that these are not the best times for developers now due to the high key interest rate. In his opinion, this is why the market is changing, where effective companies will buy inefficient ones.

"There are few companies with positive cases this year," the expert concluded.

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On the same day, it was reported that the average cost per square meter in the primary housing market in Russia has increased 2.3 times in five years. It was clarified that 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.