House prices up by 3.01% y-o-y in 2019
Russia’s house prices rose by 3.01% during 2019, a sharp improvement from last year’s 0.99% increase and its best showing since 2012. During the latest quarter, nationwide house prices increased 0.11%. Moscow’s prices were up by a meagre 0.51% y-o-y in 2019 while they increased strongly by 8.67% in St. Petersburg.
Nationwide house prices plunged 47% (inflation-adjusted) in the past seven years.
Demand is rising strongly.
Residential investment in Russia totalled RUB 55 billion (US$858 million) in 2019, up by a whopping 70% from RUB 33 billion (US$515 million) worth of deals in 2018, according to the CBRE. Total housing loans outstanding rose by 17% to RUB 7.49 trillion (US$ 116.8 billion) in 2019 from a year earlier, based on figures from the Central Bank of the Russian Federation.
Residential completions rose by 6% last year from a year earlier, after three years of declines, according to mortgage provider Dom.RF.
The real estate market is expected to continue to improve this year, buoyed by the government’s national projects that include huge investment in increasing the housing stock.
Rents, rental yields: yields are poor both in Moscow and St Petersburg, at around 3% to 4%
Moscow apartment costs are high, at around €11,866 per sq. m.
Rents, rental yields: yields are poor both in Moscow and St Petersburg, at around 3% to 4%
Moscow apartment costs are high, at around €11,866 per sq. m.
| Russia: typical city centre apartment buying price, monthly rent (120 sq. m) | |||
| Buying price | Rate per month | Yield | |
| Moscow | $1,423,920 | $3,820 | 3.22% |
| St. Petersburg | $ 586,320 | $2,129 | 4.36% |
Recent news. The Central Bank of Russia (CBR) cut its key interest rate by 25 basis points to 6% in February 2020, the sixth rate cut since June 2019, amidst slowing inflationary pressures. The key rate peaked at 17% in December 2014.
The Russian economy grew by 1.3% in 2019 from a year earlier, down from the previous year’s 2.5% expansion, according to the Federal State Statistic Service. The economy is expected to expand by 1.6% this year and by another 1.8% in 2021, based on World Bank projections.