MOSCOW (Realist English). In Russia, about two million apartments are unlikely to find buyers. Sales in new buildings hovered at zero.
“Even according to the reports of analysts affiliated with developers, who are heavily embellished, two—thirds of the houses erected are in dead idle,” the Svobodhaya Pressa review says.
Sales offices are closing, and realtors refuse to take data on new objects to work, because there is no demand.
“In the Russian Federation, at least 66 million square meters of ready-made apartments are idle, which is 66% of ready-made new buildings. There is another record, that is, an anti—record — the largest volume of useless apartments in the entire history of the modern Russian housing market …”, – reports the Svobodhaya Pressa.
A similar situation is observed in the suburban housing market. The volume of individual development has fallen four times – largely due to the lack of equipment, engineering components (gas boilers, plumbing, pumps and heaters).
Organized construction of cottage settlements has stopped completely. Only 1.76 million square meters in November 2022 against 7 million square meters in February. In fact, we are witnessing a perfect illustration of a flawed and untenable theory of market growth.
In economics textbooks of the late XX/early XXI century, market growth is a mantra and a fetish. What is happening in the Russian real estate market is a natural result of liberalization and overheating of the market (a year earlier, the same thing happened with the construction industry in the United States and Europe). Citizens of the Russian Federation feel the limits of the financial pyramid.
Simultaneously and inevitably, there was a drop in payable demand. In miniature, what is happening repeats the situation in the world trade. The only difference is that for global markets, the price for the collapse of the pyramid is a conventional world war. And for the citizens of the Russian Federation, an additional payment for the collapse of the housing pyramid card will be poverty and the return of the secondary market slum.