Almost 20 regions of Russia saw an increase in housing sales in 2022

According to the results of last year, sales of apartments in new buildings increased in 19 regions, although the primary market fell by 22% nationwide.Demand due to mortgage programs was able to save the regions of the Far East

In 19 regions, according to the results of last year, sales of apartments in new buildings increased, RBC calculated based on Rosreestr data on registered equity participation agreements for residential premises (DDU, through which most apartments are sold in the primary housing market).

In general, in 2022 in RUSSIA, demand in new buildings decreased by 21.7%, to 703 thousand apartments. In absolute terms, sales decreased by 195,000 apartments. Demand grew mainly only in the Far Eastern and Siberian federal districts.

In which regions did sales increase?

Among the regions that are in the top 10 in terms of construction of new buildings, demand in the primary market grew only in the Leningrad Region and the Krasnoyarsk Territory. In general, in all other regions, where more than 7 thousand apartments in new buildings were sold last year, sales fell.

In the Leningrad Region, in 2022, sales of apartments in new buildings increased by almost 8%, from 21.6 thousand to 23.3 thousand DDUs. At the same time, in the second quarter, sales in this region fell by 31%, but in all other quarters, demand was higher than in the same comparable periods last year. Previously, market participants explained their interest in the Leningrad region by the fact that demand from St. Petersburg was reoriented to this region, where prices increased by 20.6% over the year, to 235.9 thousand rubles. for 1 sq. m. Prices for apartments in new buildings in the Leningrad region for the year increased by 58%, but by the end of the year they were still significantly lower than in the northern capital, reaching an average of 198.6 thousand rubles. for 1 sq. m.

Prices for apartments in new buildings increased by 21% in 2022 Business

The market of St. Petersburg and the Leningrad region attracts buyers from other regions, including Siberia, the Far East and the North-West region. A more attractive price for new buildings in the region stimulates demand from regional buyers and those for whom the cost of a meter is a fundamental factor, explains Andrey Boykov, managing partner of the consulting company Rusland SP: “Over the past year, household incomes have seriously decreased, and many had to tighten up. Therefore, it is not surprising that people are betting on regional projects.”

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In the Krasnoyarsk Territory, sales more than doubled, from 12.9 thousand to 27.7 thousand apartments. Moreover, the largest volume of demand came in the first half of 2022, when 21.7 thousand apartments were sold in the region. Thanks to this growth in sales, the region came in seventh place in terms of sales among all regions of Russia (according to the results of 2021, it was only in 17th place).

Over the past few years, Krasnoyarsk has seen an active growth in construction volumes, and by the beginning of 2022, many of the projects that started two or three years ago were at the final stage of readiness, says Sergey Zaitsev, sales DIRECTOR of the Etazhi real estate agency. This redirected some buyers from ready-made housing to new buildings, where mortgage rates are more affordable. The real estate agency also notes an increase in requests from out-of-town buyers, as well as those residents of the region who left and are now planning to return and are fueling demand in the housing market. According to Etazhi, in 2021 the share of non-resident buyers of real estate in Krasnoyarsk was at the level of 10-15% of the total volume of transactions, in 2022 it increased to 20-25%.

Where else has demand for housing grown?

Among the regions with sales of more than 3 thousand apartments per year, demand growth in 2022 occurred in Yakutia - by almost 74%, to 6.9 thousand apartments. However, almost 5,000 DDUs were concluded in the first quarter, and if you do not take it into account, then from April to December, sales there fell by 27%. The situation is similar in the Irkutsk and Kemerovo regions, where sales grew by 4% and 3%, respectively, according to the results of the year, but the growth was only due to the growth in demand in the first quarter.

In the Khabarovsk Territory in 2022, almost 21% more apartments were sold than a year earlier. The main sales in this region occurred at the beginning of last year, therefore, excluding the first quarter, sales growth in the region amounted to only 2%. In Buryatia, demand almost tripled last year - from 1.2 thousand to 3.6 thousand apartments. Moreover, the largest volume of DDUs was concluded in the third quarter, when almost 1.8 thousand apartments were sold in the republic.

In Buryatia, Yakutia and the Khabarovsk Territory, the development of the primary market is greatly influenced by the Far Eastern mortgage, which, on the one hand, leads to an increase in supply, and on the other hand, heats up demand in these regions, recalls Zaitsev. At the end of July, the government expanded the Far East Mortgage program, allowing doctors and teachers, regardless of age, who have worked in the Far East for at least five years, to take loans under it. “The availability of housing under construction in these regions is still below the Russian average, so such surges in demand are fully justified, among other things, by the existing need to improve housing conditions,” the Floors note. Among the Far Eastern regions, sales also increased in the Amur Region (by more than 80%, to 1.5 thousand) and Sakhalin (by 28%, to 1.6 thousand apartments).

In 12 out of 19 regions where new-build sales increased last year, less than 2,000 apartments were sold last year. In these regions, in general, multi-apartment construction is not very developed, and in some of them, the majority of the population lives in individual houses. Sales increased in Dagestan (2.4 times, up to 1.9 thousand apartments), Tomsk region (by 24%, up to almost 1.6 thousand apartments), as well as in the Ivanovo and Novgorod regions - by 19 and 11% respectively.

In Russia, the number of regions has increased,where new buildings are not sold at all Business

In five regions with sales growth in general, less than 300 equity participation agreements are registered during the year. For example, in the Republic of Altai, the number of sales increased from 77 to 218. Sales were also recorded in three regions where, according to the results of 2021 and several years before, not a single apartment in a new building was sold - Tyva (266 kindergartens), Jewish Autonomous Region (11 apartments) and Karachay-Cherkessia (seven apartments). In the Magadan region, where until the second half of 2021 there were no sales in the primary housing market for several years, the number of pre-school institutions concluded increased from three to six apartments. At the same time, in the Nenets Autonomous District, the Murmansk Region, Chukotka and Kamchatka, sales remain zero.

The development cycle before obtaining a building permit and opening sales takes from eight to 18 months, says Kirill Khrapov, commercial director of the Samolet group. State support for mortgages began in June 2020, so the good result of last year is most likely a consequence of the growing attractiveness of buying and investing in real estate due to low mortgage rates, he believes.

How sales have changed in the most developed markets

By the number of apartments sold among the regions of Russia, Moscow, the Moscow Region, St. Petersburg and the Krasnodar Territory continue to lead. Of these, sales fell less in Moscow - by 15%, to 122 thousand preschool institutions, and in St. Petersburg - by 18%, to 62 thousand.

Sales in the Moscow Region and Krasnodar Territory fell by 30% and 48%, respectively. These regions set an anti-record for the absolute drop in sales in the number of apartments: in the Moscow region, sales decreased by 35 thousand, to 81 thousand apartments, in the Kuban - by 34 thousand, to 36 thousand apartments. The demand for housing in the Krasnodar Territory, especially in Sochi, peaked in 2020 and 2021, which was facilitated by the covid-19 pandemic , the spread of remote work formats and the closure of borders. Last year, demand declined, especially for mass market housing.

Nadezhda Korkka, managing partner of Metrium, explains the larger drop in sales in the Moscow region than in Moscow by the fact that most of the Moscow region developers did not set a large discount, although capital developers offered discounts from 15 to 35%. This is due to the fact that developers in the Moscow region often work in conditions of relatively low margins, which does not allow them to provide customers with large discounts, she explains.