Residential Real Estate - Russia

Russia

The Residential Real Estate market market in Russia is estimated to reach a value of US$7.37tn by 2024.
This projection suggests a steady annual growth rate (CAGR 2024-2028) of 5.38%, which would result in a market volume of US$9.09tn by 2028.
In terms of global comparison, China is expected to generate the highest value in the Real Estate market, amounting to US$117.40tn in 2024.
Amidst economic uncertainty, the Russian residential real estate market is experiencing a surge in demand for affordable housing options.

Key regions: Europe, Asia, Australia, United States, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

The Residential Real Estate market in Russia has been experiencing significant growth and development in recent years.

Customer preferences: In Russia, there is a strong demand for residential properties, driven by a growing population and increasing urbanization. Many Russians aspire to own their own homes, which has led to a surge in demand for residential real estate. Additionally, there is a preference for larger properties with multiple bedrooms, as families often live together under one roof.

Trends in the market: One of the key trends in the Russian residential real estate market is the increasing popularity of apartment complexes and gated communities. These developments offer a range of amenities such as parks, playgrounds, and fitness centers, which attract families and young professionals. The demand for such properties has been driven by the desire for a higher quality of life and a sense of community. Another trend in the market is the rise of smart homes and sustainable living. Russian homebuyers are increasingly looking for properties that are equipped with advanced technologies, such as smart thermostats and security systems. Additionally, there is a growing interest in energy-efficient homes and eco-friendly features, as people become more conscious of their environmental impact.

Local special circumstances: In Russia, the housing market is influenced by several unique factors. One of these is the significant role played by the government in the construction and development of residential properties. The government has implemented various initiatives and programs to stimulate the housing market, such as providing subsidies and loans to first-time homebuyers. This has helped to boost demand and drive the growth of the market. Another special circumstance in the Russian residential real estate market is the dominance of the secondary market. Many Russians prefer to buy older properties and renovate them to their liking, rather than purchasing new homes. This has created a thriving market for renovation and construction companies, as well as a demand for affordable housing options.

Underlying macroeconomic factors: The growth and development of the Russian residential real estate market can be attributed to several macroeconomic factors. Firstly, there has been a stable economic growth in Russia, which has increased people's purchasing power and confidence in the housing market. Additionally, low mortgage interest rates and favorable loan conditions have made it easier for individuals to finance their home purchases. Furthermore, the government's efforts to improve the regulatory environment and streamline the process of buying and selling properties have also contributed to the growth of the market. These reforms have made it easier for both domestic and foreign investors to participate in the real estate market, leading to increased competition and innovation. In conclusion, the Residential Real Estate market in Russia has been experiencing significant growth and development, driven by customer preferences for larger properties, the rise of apartment complexes and gated communities, and the increasing demand for smart homes and sustainable living. The local special circumstances, such as government initiatives and the dominance of the secondary market, have also played a role in shaping the market. Additionally, underlying macroeconomic factors, such as stable economic growth and favorable loan conditions, have contributed to the market's expansion.

Methodology

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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.