Real estate prices may fall by a third in Russia

According to a number of experts, real estate prices in Russia are about to fall by up to 30%.  This may happen due to the high mortgage rate, the rise in the cost of apartments due to the rise in prices of building materials and a number of other factors.  These circumstances led to an unprecedented drop in demand - up to 75%, which may lead to lower prices.

However, according to real estate experts, a public decline in apartment prices is still not worth waiting for in the nearest future. The developers can resort to a different mechanism - providing discounts through subsidized mortgage programs.

As for the open discounts, they are still possible for the categories of expensive and the least liquid real estate.

In case no new preferential programs are introduced next year, the demand for apartments will gradually decline. At the same time, a decrease in demand even by 75% is not a reason for a collapse in prices. Only a two-fold drop during the year can lead to it, says Irina Dobrokhotova, the managing partner of Dombook. In her opinion, developers are more dependent on banks than on equity holders. At the same time, the exchange rate, sanctions and inflation have already raised the minimum cost threshold, and it will continue to grow, Moskovsky Komsomolets reports.

The demand in the housing market, among other things, was also affected by the ban on a number of social networks in Russia. Developers have lost communication channels with potential buyers, says Alexander Gutorov, the commercial director of “Country Development”. The expert also noted that it is too early to talk about a decrease in real estate prices, however, their growth has already slowed down.