The Moscow Real Estate Market Has Fallen to a Record Low: What August Showed.

The Moscow region of Russia has recorded a collapse in demand for new housing. According to the Dataflat service, only 8,001 contracts for participation in construction projects were signed in August. This is 28% less than in July and 57% less than last year.

The most noticeable drop in sales is in New Moscow, where only 1,507 contracts were signed in August – 41% less than in July and 56% less than in the same period last year. Overall, according to CIAN, 8,000 transactions with apartments in new buildings were registered in Moscow and the Moscow region in August 2024, which is 28% lower than in July and 57% less than in the same period last year.

According to analysts, the decline in sales in August is the worst indicator for this month since 2015. The reason is the reduction of concluded mortgage agreements – their number is half of the average for the first half of 2024.

Although the demand for elite housing remains high in Moscow, even without subsidized programs or with high mortgage rates. Premium-class projects are also in demand. This indicates a difficult period of declining demand for housing in the Moscow region, mainly due to changes in mortgage and family support programs.

According to services and analysts, there is a decline in demand for new housing in the Moscow region of Russia. The drop in sales is most felt in New Moscow, however, the demand for elite housing remains high. The decrease in sales volumes is related to the reduction in the number of concluded mortgage agreements.