Real Estate - Russia | Statista Market Forecast

The Real Estate market market in Russia is expected to reach a projected value of US$8.37tn by 2024.
Among the different segments, Residential Real Estate dominates the market with a projected market volume of US$6.41tn in the same year.
This segment is expected to experience an annual growth rate of 5.35% between 2024 and 2029, resulting in a market volume of US$10.86tn by 2029.
In comparison to other countries, United States is projected to generate the highest value in the Real Estate market market, with an estimated value of US$132.0tn in 2024.
Despite economic challenges, the real estate market in Russia is experiencing steady growth due to increased demand for residential and commercial properties.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Russia has been experiencing significant growth and development in recent years. Customer preferences have shifted towards investing in property as a means of securing their financial future. This has led to an increase in demand for real estate and a rise in property prices across the country.

Customer preferences: Customers in Russia have shown a strong preference for investing in real estate. This is due to a variety of factors, including the perception that property is a safe and reliable investment option. Many Russians view real estate as a tangible asset that can provide long-term financial security. Additionally, the lack of trust in traditional financial institutions has further fueled the desire to invest in property.

Trends in the market: One of the key trends in the Russian real estate market is the increasing demand for residential properties. This is driven by a growing population and an expanding middle class. As more people seek to own their own homes, the demand for residential properties has surged. This trend is expected to continue in the coming years, driving further growth in the market. Another trend in the market is the rise of the commercial real estate sector. With the growth of the Russian economy, there has been an increase in demand for office spaces, retail outlets, and industrial facilities. This has led to a boom in the commercial real estate market, with developers and investors capitalizing on the opportunities presented by this growing sector.

Local special circumstances: One of the unique aspects of the Russian real estate market is the presence of a large number of state-owned properties. These properties are often sold at discounted prices, making them attractive investment options for both domestic and international buyers. Additionally, the government has implemented various policies to encourage investment in the real estate sector, such as tax incentives and streamlined bureaucratic processes.

Underlying macroeconomic factors: The growth and development of the Russian real estate market can be attributed to several macroeconomic factors. Firstly, the stable economic growth in the country has increased the purchasing power of consumers, allowing them to invest in property. Additionally, low interest rates have made it easier for individuals and businesses to access financing for real estate investments. Finally, the government's efforts to improve infrastructure and attract foreign investment have also contributed to the growth of the real estate market. In conclusion, the Real Estate market in Russia is experiencing significant growth and development due to changing customer preferences, increasing demand for residential and commercial properties, local special circumstances such as state-owned properties, and underlying macroeconomic factors such as stable economic growth and low interest rates. These factors are expected to continue driving the growth of the market in the coming years.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Real Estate - Russia

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