Ekaterinburg's housing prices are set to soar, reaching approximately 200,000 rubles per square.
In the heart of Russia, the city of Yekaterinburg continues to defy the national housing market trends, with the cost per square meter of residential properties remaining stable despite challenging macroeconomic conditions. This resilience can be attributed to strong local economic factors and ongoing demand supported by industrial development, internal migration, and investment attractiveness.
Yekaterinburg's economy, diversified and boosted by a robust industrial sector, attracts people migrating internally for jobs, supporting housing demand and thus sustaining prices. The city is one of Russia’s most sought-after agglomerations for both labor migrants and investors, which helps maintain demand for housing despite overall economic slowdown.
The availability of substantial land areas around Yekaterinburg provides room for continuous urban development, attracting buyers from surrounding regions and supporting market stability. By late 2024, Yekaterinburg ranked in the top 10 Russian cities for living standards and incomes, which underpins the housing market's resilience.
Last year, the business-class housing market was the only one with usual activity, typically acquired by high-income individuals who use little to no mortgages. However, the current demand for purchasing apartments is high, with approximately 90% of the population aiming to improve their living conditions.
Despite market fluctuations in 2024, AlekaGroup and its partners managed to reach their financial targets, albeit with some struggle. Looking ahead, the year 2025 is expected to be a seller's market, with a focus on simplifying and expediting transactions, implementing technological innovations, and maximizing efficiency and profitability for buyers.
Interestingly, last year, investors preferred bank deposits with annual interest rates of 23-24% over real estate. However, the current situation favours real estate as a long-term investment, as it has always been and remains an effective tool for preserving money. In fact, it is less profitable to store money in short-term deposits, as banks offer deposits with 18-19% interest rates.
For people to actively engage in mortgages without government programs, the interest rate would need to drop to 16%. Despite this, the high demand for residential properties in Yekaterinburg suggests that the market remains vibrant and promising, even in the face of macroeconomic challenges.
Sources:
[1] AlekaGroup plans to continue growing in 2025. (New fact not mentioned in the previous article on DK.RU)
[2] Real estate prices remain stable in Yekaterinburg despite macroeconomic challenges.
[3] Key reasons for Yekaterinburg's resilient housing market.
Investors in Yekaterinburg find real estate a preferred long-term investment, as it is less profitable to store money in short-term deposits.
The high demand for residential properties in Yekaterinburg, despite macroeconomic challenges, suggests that the city's housing market remains vibrant and promising for investors.
