Offer reset: Moscow has almost run out of apartments
The supply of apartments has drastically decreased after the introduction of a temporary ban on their construction in Moscow in October 2024, analysts told Izvestia. A total of 5.2 thousand such objects are currently on display on the primary market, which is the lowest number in the last 10 years. Against this background, the cost is also growing. Currently, apartments with an area of 12.3 square meters cost 4.7 million rubles. The most expensive — 3.4 billion. The relevant committees with the participation of the Ministry of Construction are currently discussing possible system solutions to address the issue of "legalizing" apartments, the State Duma reported. Whether it is worth buying such objects is in the Izvestia article.
How much do apartments cost?
The number of apartments in Moscow has significantly decreased after the introduction of a temporary ban on their construction in October 2024, experts in the residential area of CORE.XP told Izvestia. Thus, the unsold balance in the complexes that have not yet been commissioned (their construction began before the ban was imposed) decreased by 16%: from 793.8 thousand square meters to 663.3 thousand square meters. m. There are now 5.2 thousand lots in the primary market of the capital.
Interest in apartments arose in 2008-2009, when commercial premises began to be reformatted into residential projects, experts said. This format quickly became popular, and the peak in the sale of new buildings occurred in 2021-2022.
In the fall of 2024, at the XXV International Housing Congress, Vladimir Yefimov, Deputy Mayor of Moscow for Urban Planning Policy, announced that the Moscow authorities were no longer coordinating the construction of apartment projects. According to him, this decision was due to numerous complaints from residents of apartment complexes, since such facilities cannot be registered, and they are not provided with social infrastructure: kindergartens, schools, clinics. However, all apartment projects that developers have already started to implement will be completed.
Similar restrictions are already in effect in other regions. For example, in St. Petersburg, the design and construction of apartments has been banned since 2021, and in the Moscow region, the corresponding restrictions are applied pointwise, through adjustments to the rules of land use and development, said Valery Tumin, director of the markets of Russia and the CIS at fam Properties. The same ban was imposed in Makhachkala.
After that, the supply in this segment began to decline at a record pace, market participants noted. And the demand and prices for them continue to grow. According to analysts, the total area of apartments under construction in the capital has decreased by 16% over the year: from almost 1.2 million square meters. m up to 993.3 thousand .
According to Rigina Gordeeva, managing partner of the Floors Prime company, about 5,000 apartments are on sale in Moscow, while a quarter of them are in complexes that have already been commissioned. Another 22% is due in 2025, the rest falls on later periods.
Fyodor Ushakov, Sales Director of the Mangazeya development company, also confirmed the sharp reduction in supply. According to him, this inevitably stimulates price growth.
— However, despite this, the shortage of supply supports demand. The most interesting are compact lots that will be in demand for long—term or short-term rentals in the future," he said.
Due to the limited supply, the average price of one "square" apartment increased by 18% over the year to 541.5 thousand rubles. The minimum lot price is 12.3 sq. m. The current total is about 5 million, and the maximum is a residence with an area of 1,864 square meters. m. with a view of the Kremlin — 3.4 billion rubles.
The most affordable apartments are located in the VAO, SVAO and Southern Administrative District: the average lot price here is 13.2 million rubles, 15.7 million and 16.7 million, respectively.
Are the apartments included in the housing stock
The supply of apartments in Moscow's primary market will continue to decline, and prices will only rise, says the director of residential real estate CORE.XP. Ekaterina Lomteva.
"No new permits are being issued for the construction of apartments, and the shortage and investment demand are driving up the cost of lots," she said.
Attempts to legitimize the status of apartments have been made repeatedly, Valery Tumin noted. In 2020-2021, a bill was being developed to include apartments in the housing stock.
In January 2025, due to numerous legal and property conflicts, it was not adopted in the first reading. It was assumed that the document would approve the legal term itself, describing the non-residential real estate actually used for living, as well as define its other features.
Alexander Yakubovsky, a member of the State Duma Committee on Construction and Housing, told Izvestia that the issue of apartments remains unresolved, and "the temporary ban on their construction in Moscow only underlines how much this model has reached a dead end."
— Apartments are, in a sense, a "spherical horse in a vacuum": in fact, they are residential premises that are used for permanent residence, but at the same time they are created without meeting the requirements for housing — neither in terms of safety, nor in terms of quality, nor in terms of social infrastructure, — he stressed. — There is a certain cunning here.
According to him, developers and buyers receive a cheaper product, and then the city is forced to "catch up" at its own expense — to build schools, kindergartens, clinics, roads.
— Therefore, it would be more correct not to legitimize apartments as a separate category, but to completely exclude this format as such, — said the parliamentarian. — If you need commercial real estate, it should be offices or apartment hotels, but not a quasi-residential building without responsibility.
The relevant committees with the participation of the Ministry of Construction are currently discussing possible system solutions, emphasized Alexander Yakubovsky. One approach is differentiation: to separate residential housing from commercial formats.
"This path can form the basis of a legislative initiative to close the legal gap once and for all and eliminate manipulation," he said.
What are the risks of buying an apartment
Legally, apartments are non—residential premises, Ekaterina Kosareva, managing partner of the analytical agency VMT Consult, reminded. Their owners do not have a number of rights that are common to apartment owners. For example, it may be difficult to register, especially for children, to obtain a residence permit, to transfer property by inheritance, or to connect utilities.
"And these are not abstract legal subtleties, these are real problems that come up regularly," she said. — Another risk is infrastructural. Many apartment complexes were built without taking into account the standards for the provision of schools, clinics, kindergartens, parking lots. Developers circumvented the requirements by formally declaring a non-residential fund, and saved on the social burden.
As a result, residents receive only the external "wrapper" of a normal house, but without the urban environment and guaranteed services. This is especially noticeable on mass projects. Nevertheless, the demand for apartments in Moscow remains.
— People are willing to put up with legal restrictions for the sake of location or other "goodies". But buying for your own living is still a risk, especially if you don't understand the details," she pointed out.
In addition, the tax on apartments is calculated as on commercial real estate, which may be unprofitable for owners, said Peter Barsukov, a business consultant and partner at Developika.
"And changes in legislation and restrictions on construction make it difficult to sell such facilities in the future," he added. — The apartment market in Moscow is currently experiencing a period of stagnation, and buyers should carefully assess the risks. In the long run, everything will depend on whether the authorities soften the ban or, conversely, tighten regulation. Although now the position is obviously looking towards the latter.
The apartment market has been a "grey area" in recent years, and it has been actively exploited, experts added. The state is trying to restore order, but it has to act carefully.
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