The expert pointed to a paradigm shift in the Russian real estate market

The Russian real estate market demonstrates multidirectional dynamics in different price segments. While the mass segment is still dependent on mortgage loans, alternative investments and liquidity are becoming a key factor in the business and elite classes, which leads to price stagnation. This was stated by Vladimir Gamza, Chairman of the Council of the Chamber of Commerce and Industry of the Russian Federation on Financial Markets and Investments.

He pointed to a paradigm shift in the market after a period of rapid growth. According to him, mortgages have practically lost their role as a catalyst in expensive segments.

"In the business and elite segment, prices have practically stopped rising, and transactions are mainly for cash. It's not the loan rate and mortgage availability that are more important there, but the profitability of alternative investments, which remains very high, and this slows down demand," said Vladimir Gamza.

The expert explained that the revival in the Moscow market last year, due to the reduction in the key interest rate and expectations of the curtailment of preferential mortgage programs, primarily affected the economy class. This factor played a minor role in the premium segment.

A separate situation exists with unique objects. As an example, the expert cited luxury apartments in the Moscow Four Seasons Hotel. According to Gamza, their price dynamics may not correspond to the general market, and when they are sold, they are significantly discounted, including to the dollar value. In such cases, liquidity becomes the determining factor, which forces sellers to lower prices in order to quickly sell the asset.

"The real estate market is changing. Mortgages are no longer the main driver of price growth, especially in expensive segments. Alternative investments and the speed of sales are becoming more important," Gamza concluded.

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