Real Estate Market in Moscow Feels the Impact of the Conflict

Moscow’s Real Estate Market Trends

The high-end residential real estate market in Moscow has been significantly impacted by the ongoing conflict. According to a recent report by Metrium Group, a leading real estate brokerage in Russia, the average price per square meter in the luxury segment has decreased by 15% since the start of the conflict.

The report also found that the number of transactions in the luxury segment has decreased by 20% in the same period. This decline is largely due to the departure of foreign buyers and the uncertainty surrounding the future of the Russian economy.

Impact on Luxury Real Estate

The decline in the luxury real estate market is particularly notable in the most expensive areas of Moscow, such as Khamovniki and Arbat. In these areas, prices have fallen by as much as 20% since the start of the conflict.

The decrease in demand for luxury real estate is also due to the fact that many potential buyers are now focusing on more affordable options. This is a trend that is expected to continue in the coming months.

Impact on Affordable Housing

The decline in the luxury real estate market has had a knock-on effect on the more affordable segments of the market. As wealthy buyers move out of luxury properties, they are often buying up more affordable homes, which is increasing prices in those segments.

As a result, the average price per square meter in the mass market segment has increased by 10% since the start of the conflict. This is a trend that is expected to continue in the coming years.

Conclusion

The real estate market in Moscow is undergoing a period of significant change. The ongoing conflict has led to a decline in demand for luxury real estate, which is having a knock-on effect on the more affordable segments of the market.

It is important to note that the real estate market is cyclical, and there is no reason to believe that the current downturn will continue indefinitely. However, it is clear that the conflict will have a lasting impact on the market in the years to come.