Real Estate Demand: Social Studies, Statistics And Publications. №2(6), February 2017

16 May 2017

During 2016, the Russian residential property market begin a tentative recovery after the 2015 slump. Similarly to the 2008-2009 crisis, after regaining their post-crisis footing, Russian consumers soon began to return to the market. That said, given the sheer depth and systemic nature of the current economic crisis, the pace of recovery in consumer confidence and increase in property prices remains slow, which is in contradiction to the speedy recovery in 2010. Instead, the subdued growth in residential real estate prices seen throughout 2016 portends a period of long and unsustainable recovery.

In line with the recovery in the property market, we can expect buyers to increasingly depend on credit to finance their purchases, a trend supported by the improved terms of mortgage lending. Overall, the mortgage market has stabilised after the 2014 decline.

During 2016, in light of the current economic dynamics, the commercial real estate market entered a period of stability, with developer’s activity and demand, which had previously been curtailed by stagnation in the economy. The amount of vacant accommodation in office and shopping centres began to fall, decelerating the pace of decline in rental rates and, in some segments, laying the groundwork for a tentative recovery in both rental and sales prices. Although the positive trend is expected to continue through 2017, a pickup in growth is likely to occur at a slower pace than previously expected by market experts.

Type of publication: Industry report

Related publications

Real Estate Demand: Social Studies, Statistics And Publications. №2, October 2016
29 October 2016
The main topic of NAFI’s open research in the field of real estate for the current year became the demand of citizens for housing, both own and rented. 
We are forecasting that for the further year there will be no significant increase in demand for the purchase of own housing and no mortgage.

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