MOSCOW, October 1 – Novosti. The dynamics of prices in the secondary real estate market in the medium term was predicted in an interview with radio Sputnik by the President of the Regional Association of Appraisers (RAO) Kirill Kulakov.
The cost per square meter of housing during the pandemic has almost doubled, he said.
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“Since the beginning of the pandemic, prices per square meter in Moscow have almost doubled. The triggers for this were government support for mortgages, the rush demand for new buildings and rising prices for building materials. Following the primary market, apartment owners expectedly raised prices,” Kulakov said.
However, in recent months, stagnation has been observed in the real estate market, demand lags noticeably behind supply, the expert continued. According to him, new home sales are being stimulated by “unprecedented” promotions.
“In the primary market, developers are forced to go for unprecedented promotions with their own mortgage sales support programs,” Kulakov said.
In turn, apartment owners agree to provide buyers with substantial discounts, he added.
“The analysis shows that the difference between the initial price and the price of a real transaction today is on average 15%. In some segments, the decline reaches 20%,” Kulakov stated.
The downward trend in prices in the secondary real estate market is not a seasonal phenomenon, it will continue in the medium term, the expert is sure.
“The secondary real estate market is waiting for further price reductions,” Kirill Kulakov gave such a forecast in an interview with Sputnik radio.