Review of the Moscow real estate market based on the results of January 2024

Review of the Moscow real estate market based on the results of January 2024
In January 2024, the increase in prices on the secondary real estate market of “old” Moscow was of a residual nature - the average cost of a meter increased symbolically, by tenths of a percent, mainly due to the washout of the cheapest offers.
In January, the market grew due to low-cost segments - at the current level of mortgage rates (from 16-18% per annum), people can only afford budget options. The index of cheap housing in January increased by 0.3%, while the index of expensive housing fell by 0.1%. The largest increase over the month was demonstrated by the Northern and South-Eastern districts, where budget housing is concentrated. Old panel and brick houses are also rising in price a little faster than the market average. In terms of room size, two-room apartments are in the lead, one-room apartments are in second place, and three-room and multi-room apartments are at the bottom of the ranking - the latter have generally gone into the negative.
The rate of price growth reached its peak in late summer – early autumn 2023, amid the excitement caused by the Central Bank’s key rate increase: in August and September, the secondary meter in Moscow added 1.4% and 1.6%, respectively. However, already in October-November, the rate of price growth fell by half - to 0.8%, in December - decreased to 0.5%, and in January 2024 did not differ much from zero. In addition, in January the volume of housing supply on the secondary market stopped decreasing, which is uncharacteristic for the beginning of the year - usually at this time many sellers remove apartments from sale.
The accumulation of apartments on display and the price dynamics close to stagnation indicate a reduction in demand, which is not surprising, given the prohibitively expensive mortgages. Most likely, in the near future prices will mark time, and in the spring, as supply accumulates, they will gradually creep down.
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