Amid the completion of the program of preferential mortgages, developers pursued an aggressive pricing policy in the mass-market segment of real estate for a part of lots. The weighted average price per sq m increased in the comfort class versus both the previous quarter (5.8%) and last year (10%). Q2 2024 marked the peak demand for small-sized comfort class residential units and apartments due to certain factors such as the winding down of preferential programs with state support and the ban on designing apartments smaller than 28 sq m.

According to project declarations, the new supply in the business class in Q2 2024 amounted to 505,000 sq m, which is more than twice as much as in the previous quarter and 86% more than in the second quarter last year. Buyers of business class real estate are increasingly using borrowed funds (66% of all transactions, up 8 p.p. over the quarter).

In the second quarter six new premium class projects were rolled out to the market, while over the first quarter of this year only one project went on sale. The weighted average price per square meter in the premium class grew by 18% over the year and by 9% over the quarter. The high rates of price growth in this segment are due to new projects being launched. Demand for premium-class real estate grew by 58% over the quarter (86% over the year).

High interest on the part of buyers together with minimal dependence on mortgage programs for new builds in the elite segment encourages developers to expand their portfolios with high-budget projects. As of the end of Q2 2024, 128,000 sq m of residential units and apartments, or 777 lots, were on sale in the market of elite new builds. Over the year the increase in exposure amounted to 19%, over the quarter – to 7%. In the second quarter 11,100 sq m (or 81 lots) of elite new builds were sold.