Housing prices in «old» Moscow and the Moscow region have stopped, in New Moscow they are slowly creeping down
According to the results of July, the average price per square meter on the secondary market of «old» Moscow increased by 0.1% to 271.8 thousand rubles. The average price per square meter on the Moscow region market decreased by the same 0.1% in July, to 154.5 thousand. In New Moscow, prices fell by 0.3%, to 203 thousand rubles per square meter.
< p>In «old» Moscow in July, in terms of housing types, the entire middle of the market was in the black: panel houses added 0.1-0.3%, brick houses — from 0.3% to 0.5%. At the same time, the most affordable segment — old panel five-story buildings — lost 0.2% in value, and modern monolithic brick houses, which in Moscow are usually classified as business class, fell in price by 0.5%.
Almost all expensive districts look better than the market average in July: the Central District rose in price by 0.9%, the Western District by 0.7%, and the Southwestern District by 0.2%. The outsiders are mainly budget locations: the Eastern District (-0.4%), Southern (-0.1%), and Southeastern (0). Thus, the market is being pulled down by old panel five-story buildings and expensive housing built in non-prestigious areas — a lot of this «quasi-business class» has appeared in recent years.
In New Moscow, the Novomoskovsky District adjacent to the Moscow Ring Road (-0.5%) and apartments in monolithic brick buildings (-0.6%) have fallen in price the most.
In the Moscow Region, the situation on the secondary market in July was about the same as in New Moscow, but with less pronounced price dynamics. In terms of housing types, the most expensive segment fell the most, by 0.4% — in the region, this is modern panel housing. Among the locations, the most stable was the distant Moscow Region — there, prices did not change over the month. In the middle and near Moscow Region, a meter fell in price by 0.1%.
New Moscow has been showing the worst price dynamics in the capital region for several months now. Apparently, this is due to the overvaluation of the location, where housing prices began to grow rapidly even before the era of low mortgage rates — against the backdrop of infrastructure development, metro construction, etc. As a result, by 2021, New Moscow, which was recently the Moscow Region, overtook even some areas inside the Moscow Ring Road in terms of prices, which clearly indicated that the market was overheating. Therefore, since 2022, price growth rates in the annexed territories began to lag behind those in old Moscow.
— Most likely, the average cost per square meter on the secondary housing market will not undergo significant changes in the coming months, — comments Oleg Repchenko, head of the analytical center «Real Estate Market Indicators IRN.RU». Despite the fall in demand under the pressure of unaffordable mortgages, prices are stable against the backdrop of a lack of liquid supply. Many sellers, not wanting to reduce prices, prefer to remove apartments from sale, waiting for the market to become more active in the fall. However, given the dynamics of the key rate, the «business season» this year will end before it even begins. Therefore, owners will have to choose between two options: either wait for the weather to clear up until 2027, when the key rate will fall below 10% and affordable mortgages will return to the market, or reduce prices.»