Increase in Ekaterinburg Housing Cost: Up to 200,000 Rubles per Square Meter Forecasted
In the heart of Russia, Yekaterinburg's real estate market continues to defy economic headwinds, with the average price per square meter standing at 161,000 rubles. This resilience can be attributed to a strong and diverse demand driven by the city's growing role as a key industrial and educational center.
Despite a 30-40% increase in developers' financial models compared to the previous project period, the city's housing market remains stable. Yekaterinburg's status as one of Russia’s top three cities in housing construction, due to its industrial sector growth and economic diversification, attracts a steady stream of migrants, students, and workers, fuelling demand for housing.
The city competes with other major regional centers to attract young people and professionals, resulting in sustained demand for residential properties. Even in the face of stagnant national housing market prices, Yekaterinburg's price per square meter on the secondary market is among the highest outside Moscow and St. Petersburg.
Mortgage rates have historically been high, but recent interest rate cuts are stimulating buyer interest, potentially leading to increased housing market activity and supporting price stability. Despite this, for people to actively engage in mortgages without government programs, the interest rate should decrease to 16%.
Yekaterinburg's prices per square meter remain significantly lower than Moscow and St. Petersburg but high relative to many other regional cities, suggesting a strong local market. The demand for purchasing apartments is high, with 90% of the population aspiring to improve their living conditions.
The business-class housing market has been maintained by high-income individuals who typically use little to no mortgages. Activity in this market showed a promising start to the year, with the number of deals in January and February being 15-20% higher than in previous months.
Amidst market fluctuations, AlekaGroup aims to continue growing, leveraging its position as a strong technological institution that helps buyers turn their dream of an apartment into reality and assists developers in solving their financial challenges.
However, not all buyers are eager to jump into the market. The current market conditions have led some to postpone their deals until better times. Despite this, the overall picture painted by Yekaterinburg's real estate market is one of resilience and growth, with a focus on simplifying and speeding up transactions, implementing technological innovations, optimizing legal and tax aspects, and maximizing efficiency and benefit for the buyer.
As the year 2025 approaches, the market is expected to be a seller's year, with a focus on streamlining the buying process and maximizing returns for both buyers and sellers. It seems that Yekaterinburg's real estate market is poised for another year of growth and stability.
Sources: [1] [Rosstat] [2] [Yekaterinburg City Administration] [3] [Central Bank of Russia] [4] [Yekaterinburg Chamber of Commerce and Industry]
Investing in Yekaterinburg's real estate market, particularly in housing, continues to be attractive, given the city's robust local economy and growing demand for residential properties. The business-class housing market, sustained by high-income individuals, has shown promising signs of growth, with an increase in number of deals in the beginning of the year.
