Construction volume in Krasnodar no longer ranks among the top three cities nationwide.
In the Russian real estate market, Krasnodar has seen a shift in its position as a leading city in multi-family housing construction. According to data from the Russian portal ERZ.RF, Krasnodar currently has 4.6 million sq. m under construction, a decrease of 652.8 thousand sq. m compared to the beginning of the year. This drop in construction volume has resulted in Krasnodar losing its top position to St. Petersburg and Yekaterinburg in the first half of 2025.
St. Petersburg, with 5.13 million sq. m of housing under construction, now holds the second spot, while Yekaterinburg, with 5.11 million sq. m, has moved up to third place. Moscow remains in the lead with a massive 15 million sq. m under construction, accounting for 12.2% and 3.8 million sq. m respectively of the total multi-family housing construction volume in Russia. Tyumen is in fifth place with 3.8 million sq. m under construction, representing 3.1% of the total.
Despite the decrease in construction volume, Krasnodar showed moderate growth in the number of deals with new buildings in the second quarter of 2025. This growth, by 6%, was achieved despite tighter listings moderation in property hotspots such as Krasnodar. This moderation, carried out by the Russia-based real estate marketplace Cian, likely improved market transparency and buyer confidence.
The moderation may have contributed to more efficient deal-making and potentially boosted sales activity, even though the actual construction volume of multi-family housing declined. Other contextual factors, such as persistent income inequalities impacting housing conditions in Russian society, might have affected market behavior and demand patterns. However, the specific factor for Krasnodar’s moderate growth remains linked to market-level actions like listings moderation rather than increased new construction supply.
In Krasnodar, a total of over three thousand deals were concluded for the purchase of apartments in new buildings with a total area of over 60 thousand sq. m. Other cities, like Tyumen and Yekaterinburg, also reported growth in their construction volumes. Tyumen saw a half-year increase of 186.8 thousand sq. m, while Yekaterinburg experienced a half-year growth of 368.7 thousand sq. m.
These developments highlight the dynamic nature of the Russian real estate market, with cities continually jostling for position in terms of multi-family housing construction. As we move forward, it will be interesting to see how these trends evolve and how they might impact the broader housing market in Russia.
Investors in the Russian real-estate market may find opportunities in finite supply sections of the market, such as Krasnodar, despite its recent drop in multi-family housing construction volume. The moderation of listings by the real estate marketplace Cian in Krasnodar might have improved market transparency and buyer confidence, leading to a 6% growth in the number of deals with new buildings in the second quarter of 2025. Meanwhile, finance opportunities may also exist in cities like Tyumen and Yekaterinburg, as both have reported growth in their construction volumes.
