MOSCOW DEVELOPERS RAISED HOUSING PRICES FOR 44% IN ONE DAY

MOSCOW DEVELOPERS RAISED HOUSING PRICES FOR 44% IN ONE DAY

MOSCOW DEVELOPERS RAISED HOUSING PRICES FOR 44% IN ONE DAY
The last 24 hours have become a time of panic price changes on the Moscow regional real estate market.  The factors for this were multidirectional trends in the behavior of buyers, the actions of the Central Bank of the Russian Federation, realtors and apartment owners.  The CIAN experts tried to sum up the main results of what happened in the region.

It turned out that prices of all apartments and real estate objects were adjusted for 44%. According to analysts, already on March 1, the cost of 20% of the lots was changed.  Even earlier, on February 28, as soon as the regulator raised the key rate to 20% (previously it was 9.5%), prices were changed for 18% of lots.

On the one hand, the suddenly risen in price of mortgage led to the active use of discounts by sellers.  At the same time, on March 1, the cost of 12.5%   of lots fell down (compared to the day before), while 7.2%, on the contrary, increased.  One day later, the situation repeated, but on an even larger scale and in a different proportion.  15.5% of the properties were sold at a discount, while 28.5% of the lots raised in price.

Price fluctuations ranged from 4% decline to 3% increase.  Such fluctuations in the cost of housing experts explain by the increased activity on the part of potential buyers.  While protective mortgage rates were supposed to reduce demand for housing, the hype in the market continued to drive up prices for individual lots.
As a result, a square meter of residential real estate in new buildings was offered 0.6% cheaper than before.
CIAN analysts suggest that the proportion of those who will seek to increase prices in the housing market may increase in the near future.  And although their strategy is now influenced by the rush demand, it is not eternal.  In the next month, it is likely to decrease.  And then pricing will begin to depend on what support the government will provide to the builders.

It is known that the FAS has already got interested in these processes in the housing market.  According to the antimonopolists, it was the statements made public by the leading developers that could become additional factors that caused a stir in the market.  The agency recommended a number of leading real estate agencies (in particular, Granel Group of Companies, Lenstroytrest Group of Companies, Est-A-Tet) to be more responsible in adjusting the cost of apartments in order to avoid unreasonable price increases.

04.03.2022