Decrease in Moscow's Housing Market: New Home Construction Drops by 24.2%
Small apartments under 28 sq.m in Moscow's market have taken a significant hit following the ban on their construction, introduced by Mayor Sergei Sobyanin in 2024. Here's a lowdown on the current situation and what the future might hold:
Current Scene
- Bye-Bye Small Spaces: The ban restricted the development of one-room apartments under 28 sq.m and two-room apartments under 44 sq.m, aiming to enhance living standards in multi-apartment buildings [2].
- Decreasing Numbers: As a result, the quantity of these compact flats available on the primary market has plummeted, with 7,011 units left in late April 2025 - a 24.2% decrease compared to the same period the year before [1]. The share of small apartments in the overall new build structure had tumble down by 3.2 percentage points to 12.4% [1].
Within the historical borders of Moscow, there are currently 3,700 such apartments on sale, marking a year-on-year reduction of 24.5% [1]. VSN Group CEO Yana Glazunova projects the drop to be between 34% and 4,700 apartments [1].
Coming Attractions
- Gone in Three: According to Real Estate developer Ruslan Syrtsov, at the current sales pace, all small apartments in the city will be sold in under three years [1]. Alexei Popov of "Cian-Analytics" estimates the process will take between one and a half to two years [1].
- Adapt or Battleship: Once the existing stock is depleted, the market might adjust to the new norms, possibly leading to increased demand for larger apartments or alternative housing solutions. However, the ban will prevent the introduction of new stock in this size category [1].
All in all, the existing supply of small apartments will gradually dwindle as it gets sold, with no new additions due to the ban. It's a brand new world for those looking for small spaces in Moscow!
Source of Enrichment Data:
- Lenta.ru
- The Moscow Times
- In 2025, the average quantity of small apartments (under 28 sq.m) available on Moscow's primary market experienced a decrease of 24.2% compared to the previous year.
- Despite Syrtsov's prediction of all small apartments in Moscow being sold within three years, Alexei Popov of "Cian-Analytics" estimates the process to take between one and a half to two years.
- Investing in small apartments is becoming less frequent in the Moscow housing-market due to the decrease in their availability and the ban on their construction.
- The ban on the construction of small apartments is expected to cause a shift in the market towards larger apartments or other housing solutions once the existing stock depletes.
- By 2025, the finance sector is expected to witness changes in the Moscow real-estate market, as the ban on small apartments decreases the supply of such properties.
