Kazan developers postpone the launch of new projects due to rising prices per square metre
Several large residential complexes in the capital of Tatarstan are being launched with a one-year delay
Despite the decline in sales and overstocking on the primary real estate market in Russia, prices continue to rise. In March, Kazan even overtook Moscow in terms of growth in the cost of new buildings (+2.9%). In an effort to maintain a high price per square metre of housing, developers began to reduce the launch of new projects. In the capital of Tatarstan, the launch of several large residential complexes has been postponed until better times. Read about why flats in a cooled market are not getting cheaper, what will happen to prices tomorrow, and how expensive project financing is changing the landscape of the primary market in the report of Realnoe Vremya.
“It can't be that travel packages and food have become more expensive, but new buildings haven't”
The tightening credit policy and the reduction of preferential programmes should have cooled the real estate market, but prices for new buildings in Russia continue to grow. Kazan even outpaced Moscow in March: according to Yandex.Real Estate, flats have risen in price by 1.1%, according to Mir Kvartir — by 2.9%.
Analysts from the latter specified that the cost of a square metre of new housing in our city reached 232,700 rubles, and in the capital of the country — 410,300 rubles (+2.8%). At the same time, on average in Russia, primary housing has risen in price by 1.4%, to 145,000 rubles per square meter.
According to her, Kazan residents now need a million rubles to buy an apartment in instalments: “And people are buying with the hope that the Central Bank rate will decrease in 2027 or at the end of 2026, and they will be able to switch to a regular mortgage. The bulk of sales are instalments with a deferred payment until a brighter future. What is the second side effect of this tool? This is a price increase because, firstly, there are quite a lot of people in Kazan who have 1 million rubles in deposits. Secondly, many developers make instalments with an increase in price, and that is why we see such a price increase.”
Over the past six months, new buildings have become more expensive in 54 regions of Russia
The median price per square meter of new buildings in Kazan, according to DomClick, on the contrary, slightly decreased in March: from 249.9 thousand rubles in February to 241.6 rubles in March (-3.3%). But this happened against the backdrop of an increase in active ads to 6,200 (+403), and the very concept of the median means a price from the middle of the list, in this case, from the list of ads for the sale of real estate.
For example, in Naberezhnye Chelny, the median price of new housing increased from 131,400 rubles per square meter in February to 138,700 rubles per square metre in March (+5.7%). Moreover, the number of ads for the month, on the contrary, decreased.
SberIndex, having studied data from September 2024 to February 2025, confirms that prices for primary real estate in most regions of Russia (54) continue to grow. There are 11 regions where prices have gone from falling to rising. There are only eight regions where the cost of new buildings has begun to decline, and only in one, in the Oryol region, the price per square meter has continued to fall.
“Everyone who is sitting on deposits and saving will rush to the real estate market”
The rise in prices and mortgage rates last year reduced the affordability of housing in Tatarstan by 5.4%, the service’s analysts found. This indicator is calculated by studying the size of apartment that a worker receiving the median salary in a given region can buy with a mortgage loan with an annuity payment of 50% of income with a standard mortgage rate with a down payment of 20% and a loan term of 20 years.
In order to continue to maintain housing prices, developers have begun to reduce the volume of new projects to the market. Thus, according to one of the experts in the real estate market, the deadlines for the delivery of several large residential complexes in Kazan have been postponed:
At the same time, according to him, most federal developers are still trying not to stop their development in the region, by adding more land to the land fund and launching more new projects.
“The number of new projects has decreased throughout Russia. Now they are bringing out those projects that were previously announced and can no longer be stopped. When a bright future comes, that is, the Central Bank rate decreases, this will serve as an incentive for prices not to fall — they will rise! As soon as the mortgage rate becomes affordable, everyone who is sitting on deposits and saving up to enter into a mortgage will rush to the real estate market! There will be great demand, so there will be no apocalypse if the situation remains in the current reality or improves slightly,” Gizatova is convinced.
