Cost of new buildings increases 2.5-fold in Tatarstan since the end of 2019

Tatarstan has overtaken Nizhny Novgorod region in terms of the cost per square metre of housing

In the fourth quarter of 2024, the cost per square metre in new homes in Tatarstan reached 175,800 rubles. This is by 27% more than at the end of 2023, when the square metre in the new building cost 138,300 rubles, Realnoe Vremya found out based on Tatarstan Statistics data.

By this indicator, Tatarstan is the first in the Volga Federal District. The closest pursuer is the Nizhny Novgorod region, where a square metre in a new building will cost 161,000 rubles. The Perm region rounds out the top three (132,900 rubles). At the end of 2023, the situation was the other way around — the Nizhny Novgorod region was the first (140,200 rubles), and Tatarstan was the second. The cheapest housing in new buildings was recorded in the Orenburg region — “only” 79,500 rubles.

If we look at the types of housing, then a square metre in an apartment of average quality in the republic costs 154,300 rubles, 186,000 rubles for an improved layout, and 325,400 rubles for an elite one. Tatarstan is also a leader in the Volga Federal District on all three counts.

Since the end of 2019, the cost per square metre has increased 2.5 times — before the coronavirus pandemic, it cost 68,300 rubles. Then, at the end of 2021, it crossed the mark of 100,000 rubles and did not fall below it again. At the beginning of 2023, the cost of the square metre increased to 134,200. The full dynamics over the past six years is presented below.

Prices for secondary housing for the first time exceeded the mark of 150,000 per square metre

A square metre of secondary housing in Tatarstan, according to data for the fourth quarter of 2024, cost 150,300 rubles — by 13.6% more than a year earlier. Tatarstan also tops the regions of the Volga Federal District in terms of the most expensive apartments here — the three already mentioned Nizhny Novgorod region (136,300 rubles) and the Samara region (108,600 rubles) entered the top three. The least expensive apartments on the secondary market, as in the case of new buildings, are observed in the Orenburg region — 75,300 per square metre.

Low-quality housing will cost 118,700, average — 149,100, improved layout — 152,100. Elite secondary apartments, according to Tatarstan Statistics, are more expensive than the average new ones — 224,600 per square metre.

As for statistics from previous years, the cost did not change much in 2022-2023. But in 2019-2020, a square metre on the secondary housing market cost by an average of 4,000 more expensive than in new buildings.

If key rate is lowered, prices may equalise

Currently, the difference in price per square metre of primary and secondary housing is about 25,000 rubles. In the future, the cost may be equal, according to Ruslan Sadreev, the vice president of the Guild of Realtors of Tatarstan, director of the Premier Nedvizhimost real estate company.

At the moment, there is a mode of accumulating funds and waiting for more loyal conditions for the purchase of real estate.

“Those citizens who plan to buy real estate have the means, the desire, too, but there is no possibility yet due to the large overpayment on the mortgage. Pent-up demand is very obvious today, and people who are planning, who need to change their living conditions or invest in real estate, are on standby and are accumulating their funds in bank accounts at high interest rates. Therefore, we all expect that the key rate will slowly decrease. As soon as it decreases, all segments of the real estate market will be activated — both secondary and primary. They are interconnected because, as a rule, people who buy an apartment in a new building sell their secondary housing. Prices are also interconnected: if the price rises for primary housing, it rises for secondary housing. And the price of primary housing will not fall, all developers already speak with a single voice, because, firstly, inflation, and secondly, the cost of housing is rising because building materials and labour are becoming more expensive.