Residential property values are seeing a decrease in Russia.
In June 2025, Russia's housing market presented a varied landscape, with some cities experiencing growth while others saw a decrease in prices. Kursk led the way in secondary housing price growth, recording a 2.7% increase to reach 108.6 thousand rubles. However, this positive trend was not universal, as prices in Moscow and St. Petersburg dropped by 0.2%, and significant price drops were recorded in Tver (-1.5%), Saratov (-1.3%), and Magnitogorsk (-1.2%).
Maxim Rusakov, head of "Business IT Solutions in Real Estate" at SRG Group, explained that a decrease in housing prices was recorded in 13 out of 50 cities in June. Despite this, prices continue to rise in large cities, albeit nominal and often reflecting sellers' overoptimistic expectations. Yekaterinburg ranked fifth with a 1.4% increase (136.1 thousand rubles), while Orenburg came in third with a 1.6% increase (91.5 thousand rubles), and Chelyabinsk took the second place with a 1.9% increase (102.6 thousand rubles). Barnaul was fourth with a 1.5% increase (130.6 thousand rubles).
Analysts attribute the low number of deals to high mortgage rates, with a decrease in mortgage loan issuance indicating reduced demand for housing. The SRG representative predicts a seasonal decrease in demand due to vacations in July and August, leading to reduced market activity, fewer deals, and lower prices, as well as discounts.
However, the broader economic context could influence housing prices in Russia. The Russian economy is facing challenges such as stagnation, recession rumors, and a drop in budget revenues, which can impact consumer confidence and demand for housing. Changes in government policies, such as the revised 2025 budget with a wider deficit, could affect economic stability and housing market confidence.
The decrease in real estate transactions involving foreigners could also reduce demand and potentially lower prices. Additionally, lower global oil prices and increased military spending have significant impacts on Russia's economy, affecting consumer spending and investment decisions. High interest rates can discourage potential buyers from taking on mortgages, further reducing housing demand and potentially leading to price drops.
Experts believe that a significant revival in the housing market is possible only with a decrease in mortgage and deposit rates. Until then, the trend of rising housing prices, while not indicative of a strong market, continues to shape the Russian real estate landscape.
Investing in real-estate, particularly in large cities such as Yekaterinburg, Orenburg, Chelyabinsk, and Barnaul, might offer potential for financial growth, given their recorded price increases, despite a decrease in housing prices in 13 out of 50 cities in Russia. However, analysts caution that high mortgage rates, economic challenges, and changes in government policies could influence housing prices and reduce demand, potentially leading to price drops in the future.
