Russian developers are reducing the construction of economy-class housing. In 2023, every fourth new apartment (26.7%) was offered in this segment, in 2024 – already every fifth (21.3%), and by November of this year, the figure dropped to 17.8%. This follows from the data of the federal company “Etaji”, which are cited by “Izvestia”.
Over the past year, the share of economy-class apartments has fallen most significantly in Tyumen, Samara, and Volgograd, according to “Dvizhenie.ru”. The lowest percentage of such housing by December was in Perm (4%), Rostov-on-Don (5%), Kazan (5%), St. Petersburg (9%) and Nizhny Novgorod (10%). In Yekaterinburg and Moscow, it is only slightly more than 10%. This is due to the fact that the budget housing segment is becoming increasingly risky for developers due to the restriction of preferential mortgages, explained the CEO of the development company “Lyudi”, Denis Zhalnin. “The profitability of projects in the mass segment has been tending towards zero in recent years. And in the conditions of high inflation risks, rising land prices, and the burden on developers, it’s impossible to endlessly ‘dry out’ the cost of apartments to meet the price expectations for budget housing,” noted the expert (The Moscow Times).
