Real estate market in Russia - statistics & facts
Russia has one of the highest homeownership rates in Europe. With almost 92 percent of its housing stock owned by the population, it is a large market for domestic and foreign clients. The growth in house prices is higher than that in rental rates, resulting in Russia ranking among the countries with the highest house-price-to-rent ratio worldwide.
The outlook for the Russian real estate market depends on the factors specific to each market segment. While retail real estate is recovering from the exodus of Western brands and warehouses have almost no vacant space, the housing segment sees a steady increase in prices, which negatively affects willingness to purchase.
Residential real estate
Moscow has the highest housing prices across Russia, in the primary and secondary segments. In the most expensive district of the capital, Ostozhenka, the square meter price of residential properties stood at over 540,000 Russian rubles per square meter in August 2024. Other major cities with some of the highest prices are Saint Petersburg, Kazan, Nizhniy Novgorod, and Yekaterinburg. In general, the segment is facing a decline in demand for new properties due to rising consumer prices.Shopping center properties are occupied again
The retail real estate segment experienced a higher vacancy after major Western brands exited the market. In Moscow, more than 15 percent of the units were available in 2022, and this share was forecast to decline to less than six percent by the end of 2024, domestic stores as well as companies from other regions occupied the properties. In Saint Petersburg, the vacancy rate for property units in shopping centers dropped to three percent by the end of 2023, showing a decrease of 4.1 percentage points compared to the previous year.Office market in Moscow
In the first six months of 2024, the average prime rental price for offices in Moscow amounted to over 21,200 Russian rubles per square meter, which was 3.6 percent less than in the corresponding period of the previous year. Most international companies that operated in Russia had a presence in Moscow. Furthermore, foreign businesses usually rented the most expensive properties in the city. The vacancy rate of commercial office real estate in the city stood at seven percent in 2023 and was expected to increase in the following year.The outlook for the Russian real estate market depends on the factors specific to each market segment. While retail real estate is recovering from the exodus of Western brands and warehouses have almost no vacant space, the housing segment sees a steady increase in prices, which negatively affects willingness to purchase.
