A square meter in the Moscow region has risen in price by 30%: analysts named three reasons for such a rise in prices

The cost of a square meter in the Moscow Region in 2021 increased by a third, to 165,000 rubles, and the cost of apartments increased by 15.8%, to 8.1 million rubles, according to experts from the consulting and analytics department at NDV Supermarket Real Estate.

“Several factors influenced such a significant increase in the cost of apartments in the primary market of the near Moscow region. Firstly, this is the transition of the industry to escrow accounts, which led to an increase in the starting prices of apartments in new buildings. Secondly, after the introduction of the preferential mortgage program with state support, the activity of buyers has seriously increased, and this also affected the rise in real estate prices. Thirdly, apartments with decoration have become a trend in recent years. Today, a large share of the exposition – 67% – is housing with repairs. Over the year, this figure increased by 6.3%, and the volume of supply with different types of finishes – by almost 50%,” said Elena Chegodaeva, head of the analytics and consulting department at NDV Real Estate Supermarket.

According to analysts, the largest increase in prices per square meter was noted for two-room and three-room apartments, which have risen in price by 32%. In terms of the overall price increase, the segment of three-room apartments is leading, which on average rose by 20.5% to 11.5 million rubles. In second place is the category of one-room apartments, which increased in price by 18.8% to 6.2 million rubles.

Also, experts note that the location of housing and the volume of supply in a particular area have a great influence on the cost.

“The growth of the weighted average price per square meter in the near Moscow region by 30.3% is associated not only with an increase in demand, but also with a small volume of supply in some urban districts. The lack of supply in demanded locations leads to a rush price increase, as, for example, in the Reutov urban district, in which only one project is being implemented,” the company’s analysts say.

The leaders in the rise in price per square meter were: the urban district of Reutov, where over the past year the price per “square” increased by 73.4%, Ramenskoye – by 51.1%, Odintsovo – 39.5%. As a result of the increase in the average price per square meter, the average budget for buying an apartment also increased: from 7 to 8.1 million rubles. The most noticeable increase in analysts was recorded in Reutov – by 47%, Odintsovo – 19.5%, Balashikha – by 17.8%.