Monthly increase in Russian new construction housing prices in July 2024 slowed to 0.4%.
"After the end of mass mortgages with state support from July 1, the growth of the prices of new buildings has slowed down by more than half. In July, prices on the primary market in Russia rose by +0.4% after +1.0% in May and +1.4% in June against the background of cooling demand”, according to the state company Dom.rf.
As of mid-August, the price of 1 square meter of housing under construction in July 2024 amounted to EUR 1,780. In July 2023, it was EUR 1,561. At the same time, the increase in apartment prices in new buildings from the beginning of 2024 slightly exceeded inflation for the same period, the company notes: 5.9% vs. 5.1%, respectively.
There is a slowdown in the growth of the prices of new buildings in 9 of the 10 largest regions of the country in terms of the volume of housing under construction. And in Moscow, the price of an apartment on the primary market decreased by 0.2% month-on-month, “after an increase of 3.1% in June, when there was strong demand before the end of the preferential mortgage".
The head of the research department in the housing sector of the analytical center, Maria Zholobova, expects that the “restrained price dynamics of housing under construction” will continue if primary market demand remains tepid. According to her, the prices of new buildings until the end of 2024 will grow within the limits of inflation and will not really change.
On July 1, the “Preferential mortgage for new buildings” ended in the Russian Federation. The program has been in effect since April 2020. It allows you to buy a home from a developer in the primary market or get a loan to build your own home. The difference between the preferential rate of 8% and the current base rate of the Central Bank of the Russian Federation was compensated to the banks from the federal budget. During the program, more than 1.5 million loans worth more than 6 trillion rubles were issued under it.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE