Moscow Housing Market: Revenue Shifts in 2025

The Moscow real estate market presented a complex picture in 2025. On the surface, the numbers suggested robust health: developers in the capital and its surrounding region collectively achieved a significant revenue increase. However, beneath this positive headline, a different story was unfolding for many of the industry's largest players.

The market's growth was driven by two primary factors: the rising cost of new apartments and the release of pent-up buyer demand. This combination allowed the sector as a whole to outperform the previous year's results, setting a new benchmark for total sales volume.

According to the latest market data, residential developers in Moscow and the Moscow Oblast generated a combined 2.3 trillion rubles from apartment sales in 2025. This represents a 7% increase compared to the total revenue recorded in 2024. The growth was primarily fueled by higher prices per square meter rather than a significant expansion in the number of units sold.

The surge in prices was a direct result of limited new supply entering the market. Simultaneously, buyers who had delayed their purchases during previous periods of uncertainty were now actively participating, creating a wave of deferred demand that helped absorb the available inventory at premium prices.

The market dynamics can be summarized as follows:

• Price Appreciation: New construction costs increased significantly.
• Demand Release: Buyers returned to the market after periods of hesitation.
• Overall Volume: Total market revenue reached 2.3 trillion rubles.

While the aggregate market data points to growth, this trend did not extend uniformly across all companies. A notable number of major developers experienced a decline in revenue during the same period. This divergence highlights the varying strategies and market positions within the industry.

Several key factors contributed to this performance gap. Many large developers faced challenges due to a shrinking volume of available projects. This scarcity of new offerings limited their sales potential despite high market demand. Furthermore, the industry saw a strategic shift away from promotional incentives.

The primary challenges for large developers included:

• Reduced Project Pipeline: A smaller number of new developments launched.
• Dependence on Subsidies: Reliance on state-backed preferential mortgage programs.
• Elimination of Discounts: A deliberate move away from price reductions and installment plans.

The decision by many developers to abandon discounts and installment plans was a calculated move. By removing these financial incentives, companies aimed to maintain higher profit margins per unit. However, this strategy also made properties less accessible to a segment of potential buyers, potentially impacting sales velocity for some firms.

Another critical factor was the market's growing dependence on preferential mortgage programs. These state-subsidized loans have become a cornerstone of the housing market, making new apartments affordable for a wider audience. Developers who were heavily reliant on these programs faced vulnerability if the availability or terms of such financing were to change.

The combination of these elements created a challenging environment for large-scale developers. While the market's total revenue grew, the internal dynamics shifted, favoring companies with a steady pipeline of new projects and those less dependent on external financing mechanisms.

The 2025 results indicate a maturing real estate market in the Moscow region. The era of rapid expansion through heavy discounting appears to be giving way to a more price-focused strategy. Developers are increasingly prioritizing the value and quality of their offerings over aggressive sales tactics.

Looking forward, the market's stability will likely depend on the continued availability of favorable financing options. The health of the sector is now closely linked to government support for housing affordability. Any shifts in this area could have immediate and significant impacts on developer performance and overall market activity.

The key takeaway from 2025 is that market growth does not guarantee success for every player. Strategic positioning, project pipeline management, and adaptability to changing financial landscapes are now more critical than ever for developers operating in this competitive environment.