The construction crisis in russia continues
The revenue of russian developers in January–August 2025 decreased by 8% — to 2.9 trillion rubles (about 35 billion US dollars). This is the first decline since the beginning of the “mortgage boom.” Sales dropped even more — by 17%, to 14.4 million sq. m. The mass segment, which forms the basis of family housing, suffered the most.
▫️ 19% fewer new projects were launched on the market. This indicates that developers do not believe in demand and fear accumulating unsold apartments. Mortgage rates exceed 20% annually, even despite the central bank lowering its key rate. For ordinary families, buying housing is becoming unrealistic.
▫️ The gap between the primary and secondary markets has already reached 70–80%. This is a sign of a “bubble” that is being artificially sustained. Without subsidies, it could burst, hitting both buyers and banks. In regions where construction provided jobs for a third of the economy, employment reductions are beginning.
The Center previously reported that in May, apartment sales in russia fell by 15% compared to March and by 40% year-on-year. The construction sector is becoming another indicator of the systemic crisis of the russian economy amid war expenditures and declining household incomes.
