Moscow is slowly transforming into a city for the wealthy and successful. In the past year, the capital has seen a sharp rise in the share of expensive new developments. Mass housing projects, which were most affected by the worsening conditions of mortgage lending, are gradually moving outside the Moscow Ring Road (MKAD). There is a major transformation taking place in the Moscow construction market, as evidenced by the trends that have emerged in 2024.
Ruslan Sirtsov, Managing Director of Metrium, reported that the volume of new developments continued to grow in all classes by the end of the year. In November, developers offered 51,500 apartments and apartments. The supply volume remained at 20,000 units in the mass segment, but increased from 20,000 to nearly 23,000 in the business class. The most noticeable increase in supply was recorded in the premium segment, with the number of offerings rising from 5,000 in December 2023 to 7,000 in November 2024. In the elite and deluxe segments, the supply increased by 34% (from 1,200 to 1,700 units). In the New Moscow area, the supply volume remained unchanged at 21,000 apartments.
"In the current conditions, the premium class has become the golden mean in the Moscow real estate market," said Dmitry Golev, Commercial Director of Optima Development. He explained that this segment is less dependent on the rise in mortgage rates, as the share of credit transactions is traditionally small. Many customers who previously purchased apartments on credit have switched to installment plans but have not left the market. Additionally, buyers from more expensive segments, such as the elite and deluxe classes, are transitioning to the premium segment because they cannot find suitable projects in those segments.
