Moscow’s real estate market is undergoing significant transformations, influenced by economic factors and changing buyer preferences. Understanding these trends is crucial for prospective buyers and investors.
Decline in New Housing Projects
Recent data indicates a notable decrease in new residential developments. In the third quarter of 2025, only seven new projects commenced sales, marking a 12-year low. This decline is attributed to the conclusion of subsidized mortgage programs and elevated market rates, which have dampened demand and prompted developers to scale back on new initiatives. Consequently, the total available new housing shrank by 17.8% year-on-year in September 2025, amounting to 3.3 million square meters.
Surge in Luxury Housing Supply
For the first time, the volume of luxury housing supply in Moscow has surpassed that of the comfort class segment. In the first quarter of 2026, luxury housing accounted for 18% of new offerings, while comfort class stood at 17%. This shift reflects a growing developer focus on high-budget projects, with the supply of affordable housing in Moscow’s traditional boundaries decreasing by 34% over the year.
Rising Property Prices
Despite the reduction in new projects, property prices continue to climb. The weighted average price per square meter in Moscow reached 848,900 rubles, a 23.6% increase over the year. This upward trend is driven by limited supply and sustained demand, particularly in the luxury segment.
Impact of Mortgage Rates
Elevated mortgage rates have significantly influenced the market. With average rates exceeding 21%, purchasing power is constrained, leading to a focus on completing existing projects rather than initiating new ones. Analysts suggest that a reduction in the Central Bank’s key rate to between 9% and 12% could stimulate renewed construction activity.
Conclusion
Moscow’s real estate market is characterized by a decline in new housing projects, a surge in luxury housing supply, rising property prices, and the impact of high mortgage rates. Prospective buyers and investors should stay informed about these trends to make strategic decisions in this evolving landscape.