High-priced city square meters stray above the 200,000-ruble threshold.
In a recent report by DK.RU, the price of new apartments in Russia's million-plus cities has shown signs of stagnation or a slight decrease. This trend, primarily observed in the secondary housing market, is believed to be mirrored in the new construction sector due to similar demand and financing conditions.
The average price per square meter for new apartments in 16 Russian million-plus cities reached 200,800 rubles by July 2025. Cities like Omsk, Ufa, and Chelyabinsk typically have the lowest new apartment prices, often starting below 100,000 rubles per square meter. At the other end of the spectrum, Moscow, St. Petersburg, and Kazan usually have the highest prices, with Moscow new apartments averaging well over 200,000 rubles per square meter.
One key factor influencing new apartment prices is the mortgage market. From July 2025, banks are required to limit the issuance of mortgages to citizens with high debt burdens and low down payments. Additionally, the average mortgage interest rate in Russia is about 16.88% for a 20-year fixed-rate loan, which can be a significant financial hurdle for buyers.
Another factor is the rising utility and maintenance costs. Starting in July 2025, housing and utility service prices have increased sharply, with nationwide average increases of 11.9%, and regional increases up to 22.3% in some areas. Higher ongoing costs may make housing less attractive or affordable, potentially dampening new apartment demand and prices.
Economic and demographic factors also play a role. The average monthly net salary in Russia is about 65,000 rubles, which is a limiting factor for expensive housing markets. In recent years, many regions have seen oversupply in the new apartment sector, leading to competitive pricing and slower price growth.
Regional variations are also significant. Cities like Moscow and St. Petersburg, with their high demand and economic activity, have the highest prices, while other million-plus cities are more moderate and sensitive to local economic conditions and buyer ability.
Here's a summary table of estimated new apartment prices in Russia's million-plus cities as of July 2025:
| City Group | Estimated New Apartment Price Range (RUB/m²) | Notes/Examples | |---------------------------|---------------------------------------------|---------------------------------| | Moscow (top projects) | 220,000–320,000+ | Highest prices | | St. Petersburg | 150,000–250,000 | Second highest | | Kazan, Krasnodar, etc. | 120,000–180,000 | Mid-range among million-plus | | Omsk, Chelyabinsk, Ufa | 80,000–120,000 | Lowest among million-plus |
The Prosecutor General's Office has shown support for the State Duma's initiative for new rules on apartment sales, requiring non-cash transactions and suspending sales with signs of suspicious activity. The cheapest new housing is available in Volgograd at 128,200 rubles, a 4.6% increase from the end of 2024. Kazan has the most impressive growth rate among all cities studied, with a 12.4% increase compared to six months ago.
In light of the Rose Report, the somewhat static or decreasing property prices in new apartments may be accompanied by a similar trend in the investing sector of Russia's housing market, given the shared demand and financing conditions. The mortgage market, with enhanced restrictions on high debt burdens and low down payments, along with an average mortgage interest rate of 16.88%, could potentially impact the overall finance-related aspects of investing in new real-estate projects.
