Housing now in installments
During the period of unavailable mortgages, developers are looking for ways to maintain sales and keep prices down
Kazan unexpectedly found itself among the Russian cities with a population of one million, where prices in the primary housing market increased in March. According to Yandex Real Estate, the cost per square metre in new buildings in the capital of Tatarstan in March increased by 1.1% compared to the previous month, to 236,000 rubles. The share of installments from developers has increased significantly in sales. Whether one should expect a price correction in the market now and due to what factors it can occur — in the review of the analytical service of Realnoe Vremya.
Growth per square metre recorded in the primary market
According to the Yandex Real Estate service, the median cost per square metre in new buildings in Kazan in March was 236,000 rubles. It increased by 1.1% during the month. The average total cost of an apartment on the primary market in February was 12.3 million rubles, and the average lot area in Kazan is 55.3 square metres.
The median cost per metre in new buildings decreased over the past month in St. Petersburg (-4.7%, to 263 thousand rubles), Krasnodar (-3%, to 145 thousand rubles) and Rostov-on-Don (-1.3%, to 140 thousand rubles). In Perm (-0.3%, up to 156 thousand rubles) and Nizhny Novgorod (-0.1%, up to 185 thousand rubles), the price reduction was insignificant and can be considered stagnation.
In March, the millionaires with the highest median price per square metre were: Moscow (+2.4% per month, up to 403 thousand rubles/sq. m), St. Petersburg (-4.7%, up to 263 thousand rubles/sq. m), Kazan (+1.1%, up to 236 thousand rubles/sq. m), Nizhny Novgorod (-0.1%, up to 185 thousand rubles/sq. m) and Novosibirsk (+0.8%, up to 169 thousand rubles/sq. m).
However, despite the increased demand in the primary market, it is premature to talk about a new beginning of market growth, he believes. One should expect a serious reversal of the monetary policy of the Bank of Russia.
On average, in Russian megacities, the number of ads for the sale of new buildings in March 2025 increased by 3.2% compared to February, due to the marketing activity of developers. The share of installment purchases in the structure of transactions in the primary market is growing.
Developers: real estate prices will continue to rise
The market has not shown any sharp jumps lately. “Over the past six months, there have been no external shocks or internal distortions that can cause a galloping rise in prices. Prices are rising moderately and predictably," says the developer.
“Since the beginning of the year, apartments in SMU-88 residential complexes have risen in price by no more than 4% on average. This is within the general inflationary processes. Moreover, the final cost of an apartment is less and less affected by the bank margin today: more and more clients are choosing installments from the developer — now this is the dominant transaction format in our segment," he confirmed the words of the previous speaker.
In the near future, Galeev expects a seasonal increase in the cost of building materials associated with the start of the active construction season. “This will also affect the cost per square metre, but most likely in the range of 5-7%, without sudden jumps," he suggests.
In general, the year 2025, according to SMU-88 estimates, will maintain the trend towards stable, progressive price growth — without overheating, but also without rollbacks. “Kazan is developing, the demand for housing here remains consistently high, and this is the main factor determining the dynamics of the market. A lot depends, of course, on the level of the key rate, but it is not yet clear on what to base forecasts of its change," he concluded.
Despite the mortgage rate, prices per square metre continue to rise — they increased by 8% at the beginning of the year. Today, the average price per square metre in the agglomeration is 160 thousand rubles. In Kazan itself, where the second project of Tochno is planned, there is a slight increase in prices at the level of 2%, and sales growth of 62%. The average price per square meter here is 250 thousand rubles, Sabantseva said.
“If we talk about price forecasts for 2025, a decrease is unlikely," she said. “The increase in prices per square metre and the active use of installments and mortgages indicate that the market is recovering and ready for new opportunities.”
The market is transforming and becoming more transparent
“Banks receive rewards for obtaining preferential loans, and if these payments are reduced, developers will be able to adjust the price tags. In addition, reducing agency fees for attracting customers will also reduce the burden on the final cost per square metre," he believes.
The price adjustment may be 5-10%, depending on the location and class of housing. “The most noticeable decrease is expected in locations with high competition between developers. As a result, buyers will be able to purchase apartments cheaper, and the new building market will become more transparent by reducing added bonuses, commissions and overpayments," Maxim Nikolaev notes.
At the same time, Ruslan Khabibrakhmanov, CEO of Flat company, does not record price increases in the Kazan market this spring.
At the same time, significantly fewer new residential complexes are entering the market: project financing rates remain high, banks' position on project evaluation is tightening, and developers' planning is becoming more cautious. In the future, the reduction in supply in the real estate market will inevitably affect the price per square metre.
