The real estate expert named the key reasons for the rise in housing prices in 2025

Valery Tumin, Director of the Russian and CIS Markets at fam Properties, on October 26, in an interview with Izvestia, identified several key factors influencing the rise in real estate prices and named the regions where the increase in housing prices was most noticeable.

He stressed that the cost of construction continues to grow.: construction materials have risen in price by 6-7%, and the use of machinery has increased even more. In addition, expensive project financing — the key rate was kept at 21%, is now gradually decreasing, but loans for developers are still expensive. Inflation also has a significant impact, which increases the costs of the industry. Developers, according to Tumin, are forced to include these costs in the cost per square meter in order to maintain the profitability of projects.

"In Moscow, for example, in October, comfort class added 1.5% per month and now costs 346 thousand rubles per square meter. Business class has risen in price by 0.8%, elite class - by 0.7%. That is, the mass segment is growing faster than the premium segment, which is also natural: there is higher turnover, more transactions, and more active competition for the buyer. The elite segment is traditionally more stable and less dependent on market fluctuations," the expert said.

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According to him, the most noticeable price increases are recorded in the southern regions and resort locations. Thus, in Sevastopol, the increase reached 29.3%, in Vladikavkaz — 9.8%, in Simferopol — 5.6%, while Krasnodar and Moscow added about 3.5%. According to Tumin, this dynamic is due to the influx of investments and increased demand from both local residents and those who are considering moving south or buying a vacation home. At the same time, the growth in cities with a population of one million is more moderate - about 5% per year, and in some territories, including Tomsk and Makhachkala, a slight decrease in prices was noted in October.

Speaking about the prospects, Tumin assesses them as moderately positive. He believes that prices will rise at the rate of inflation — about 6-8% per year. Demand for new buildings has already begun to recover: in October 2025, sales increased by 33% compared to last year, although they did not reach the level of the preferential mortgage period. The key factor for further dynamics will be the change in the key rate. If it continues to decline, mortgages will become more affordable, demand will revive even more, and prices may rise faster. If it remains high, the market will move more smoothly. In any case, a sharp collapse in prices is not expected.

On the same day, analysts of "Movement.<url>", having studied the data from the Unified Housing Construction Information System (UISWS), told Izvestia that in the period from January to October 2025, the weighted average cost per square meter in transactions with apartments in new buildings across Russia amounted to 203.6 thousand rubles. This is 13% higher than in the same period last year, when the weighted average cost per square meter was 180.8 thousand rubles.