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Experts predict that housing prices will fall in Russia: we explain when and by how much
RBC, citing ACRA analysts, reports that prices on the Russian housing market could fall by 3-5% next year.
Experts attribute the potential for price reduction to high interest rates and extensive incentive programs. They will put pressure on prices over the next 12 months. Analysts say that developers and owners of secondary housing are becoming increasingly willing to agree to discounts.
At the same time, experts believe that in 12-18 months, prices may start to rise again. This will happen against the backdrop of a decrease in base and mortgage rates, which will lead to an increase in sales. In addition, the pace of construction is slowing down, so it is expected that by 2025, the supply of developers will be limited. Demand will remain due to existing loyalty programs. In this situation, experts expect that prices for primary real estate will rise first, and then for secondary real estate.
We have previously said that we should expect surprises that could lead to another rate hike after October 25. Please follow the link for information on how you can lower your rates and when that will happen.