mk.ru
Moscow Business-Class Real Estate: Stable Demand Despite Fewer 2025 Projects
Moscow's business-class new construction market saw stable demand in 2024, but a post-mortgage-program drop led to developers improving offerings and blurring class lines; 38 projects are planned for completion in 2025, down 30.9% from 2024, potentially impacting prices despite high overall Russian construction.
- How do developers compensate for reduced demand caused by the end of the preferential mortgage program?
- The reduced supply of business-class new buildings is driven by fewer projects (38 in 2025 vs 55 in 2024) and a 27.5% decrease in planned building completions. Family mortgages and installment plans are now key demand drivers, particularly for ready-to-move-in units, which comprise only 13.5% of the market. This shortage is expected to worsen.
- What is the immediate impact of the reduced preferential mortgage program on the Moscow business-class real estate market?
- Demand for business-class new buildings in Moscow remained stable in 2024 compared to 2023 but significantly decreased after the end of the preferential mortgage program. Developers compensated by offering discounts, installment plans, and improved product quality, blurring the lines between business and premium classes. Many 2025 business-class buildings now offer premium features.
- What are the long-term consequences of the decrease in new business-class building projects in Moscow, considering the overall housing needs and aging infrastructure?
- The decrease in new building projects, particularly in the popular segment within the Moscow Ring Road, will likely impact prices. While overall construction remains high (115 million sq m currently under construction in Russia), a potential long-term impact is the insufficient supply to address the aging housing stock and the need for 100-120 million sq m of new construction annually to avoid a future crisis. The high cost of project financing in 2025 might delay some projects, affecting completions in 2028.
Cognitive Concepts
Framing Bias
The article frames the reduction in new construction projects as potentially problematic, highlighting concerns about price increases and long-term housing shortages. While acknowledging positive aspects like increased overall construction volume nationally, the emphasis leans towards the negative impacts of the decrease in Moscow's business-class projects.
Language Bias
The language used is largely neutral and objective, relying on factual data and expert quotes. However, phrases like "significantly slumped" (in reference to demand) carry a slightly negative connotation. The use of terms like "deficit" and "crisis" might be considered somewhat loaded in terms of creating a sense of urgency.
Bias by Omission
The article focuses primarily on the Moscow real estate market and doesn't offer a comparative analysis of other major Russian cities or regions. This omission limits the scope of the conclusions about national housing trends.
False Dichotomy
The article presents a somewhat simplified view of the market by contrasting "ready-to-move-in" apartments with those under construction, without fully exploring the nuances of different stages of completion or the various financial implications for buyers. There is also a slight implication that only ready-to-move-in properties are desirable, which is an oversimplification.
Sustainable Development Goals
The article discusses the construction of new residential buildings in Moscow, contributing to the development of sustainable urban environments. While focusing on the business class segment, the overall increase in housing construction contributes to providing adequate housing and improving living conditions in cities. The mention of "cities in a city" concept suggests sustainable urban design principles being considered in new projects. However, the decrease in the number of projects and the potential impact on affordability require further analysis for a complete assessment.