Demand for housing in Russia has dropped sharply: prices may soar by 30%.

Decline in housing demand in Russia

According to inkorr.com: Throughout the first nine months of 2025, a decrease in demand for new buildings has been observed in 25 out of 28 major cities in Russia.

According to the Ukrainian Foreign Intelligence Service, the largest declines were recorded in Krasnoyarsk (-37.1%), Volgograd (-32.8%), the Krasnodar Territory (-32.2%), and St. Petersburg (-29.9%). In the temporarily occupied Sevastopol, sales volumes have fallen more than twofold.

Prospects for the housing market

According to a new study by the Analytical Credit Agency for the state company DOM.rf, a decrease in the Central Bank of Russia's key rate could lead to an increase in housing prices by 30% by 2027, and also by 1.5 times by 2030.

'The official narrative is - 'buy now, as it will be more expensive later'. But in reality, mortgages today cost buyers 28-30% per annum, and the number of subsidized loans has decreased by a quarter compared to 2024 due to stricter conditions for obtaining them,' the intelligence report states.

In the opinion of experts, the goal of this campaign is not to ease the lives of citizens but to support developers and fill the military budget, which is suffering from a deficit.

'The authorities are trying to activate the market while simultaneously 'shaking out' the remaining savings from the population. Estimates suggest that three years of full-scale war have cost Russia at least 200 trillion rubles ($2.2 trillion) - an amount sufficient to provide every Russian with a one-bedroom apartment,' the Ukrainian Foreign Intelligence Service reported.

Thus, the demand for housing in new buildings in Russia continues to decline, which may lead to a rise in prices in the future. Analysts believe this is a result of the authorities' attempts to support developers and compensate for the military budget deficit at the expense of citizens.