Moscow has seen a decline in housing demand.
In August, the number of mortgage applications halved compared to the average monthly result for the first half of 2024.
In the Moscow region of Russia, demand for housing in new buildings is falling for the second month in a row after the end of the preferential mortgage program in the Russian Federation and changes to the conditions for family housing. This is reported by the Russian edition of Forbes.
It is noted that according to the Dataflat service, in August in this region (Moscow, Novaya Moskva and the Moscow region) only 8,001 share ownership agreements (SWA) were concluded, which is 28% less than the July result and 57% less than in August last year.
Housing sales fell the most in August in Novaya Moskva: 1,507 agreements were concluded (minus 41% per month and minus 56% per year).
According to another Russian service, CIAN, in August 2024, 8,000 transactions with apartments and flats in new buildings were registered in Moscow and the Moscow region, a drop in sales of 28% month-on-month and 57% year-on-year was recorded.
According to analysts, such sales volumes in August are the worst for this month since 2015. In absolute terms, the indicators of May and September 2022 are repeated. At the same time, the monthly rate of decline decreased, in July demand fell by 38%.
It is noted that the decrease occurred due to mortgage transactions: in August, the number of mortgage applications decreased by half compared to the average monthly result for the first half of 2024.
According to experts, at the same time, there is a high demand for luxury housing in Moscow, which will not be hindered by the lack of preferential programs or high market mortgage rates. As for premium projects, they are still in demand.