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In the bustling city of Moscow, the restrictions on small apartment withdrawals below 28 sq.m have resulted in a striking 24.2% reduction in their availability since their implementation. Currently, these homes are being marketed in projects that have already received all necessary approvals, and it could take developers up to three years to sell off their remaining stock.
As of the end of April 2025, there were 7,010 units of apartments under 28 sq.m available on the primary market in Moscow. This represents a 24.2% decrease compared to the previous year. Analysts at Est-a-Tet discovered that these compact apartments account for 12.4% of the overall new construction display, a decrease of 3.2 percentage points. Moreover, VSN Group's CEO, Yana Glazunova, reported a 34% decrease, down to 4,700 apartments.
The Moscow City Hall enacted a ban on the construction of small apartments from August 1, 2024. The mandated minimum area for one-bedroom apartments is now 28 sq.m, while two-bedroom apartments must be at least 44 sq.m. Interestingly, the construction of apartments less than 28 sq.m had already been halted since May of the preceding year (as reported by "Kommersant" on May 16, 2024).
According to CIAN Analytics' head, Alexei Popov, the projects were not stopped during the permit acquisition stage but rather at earlier phases, allowing many of these projects to initiate following the ban's introduction. SIS Development founder, Yaroslav Gutnov, stated that these compact apartments are currently featured in 160 residential complexes – an increase from the previous year's 141. Many developers delay the commencement of construction after obtaining permits due to the high cost of project financing, as noted by Metrium's managing director, Ruslan Syrtcov.
Despite these constraints, the share of small lots in primary market transactions remains noteworthy, according to Alexei Popov. He explained that in the first quarter of 2025, 15.5% of transactions on the Moscow real estate market involved apartments under 28 sq.m, a slight decline from the previous year's quarterly high of 17.4%, which was driven by rumors about the upcoming ban on such housing. Top broker Whitewill Ekaterina Leviina noted that these small apartments on the primary market are rarely purchased for permanent residency; instead, they are often the first home for students or investments. Director of Sales at the developer company "Mangazeya" Fedor Ushakov added that the low initial investments make these objects attractive to investors.
Traditionally, compact apartments have been considered more profitable for developers, including due to the high cost of implementation. Ruslan Syrtsov commented that the average cost of a compact apartment in the mass segment, including New Moscow, is currently 366,500 rubles per sq.m – a 7.5% increase compared to the average value for the primary market.
Alexei Popov elaborated that in the old boundaries of Moscow, micro-apartments have increased in price by 10% to 418,000 rubles per sq.m. However, this increase is less pronounced than the 14% overall market growth to 403,000 rubles per sq.m. The dynamics in the compact segment were quite varied, including the removal of major offers at below-market prices. Overall, according to Mr. Popov, the growth in the cost of small lots is limited by their limited functionality. "Living here is uncomfortable, and paying extra for an additional 5 sq.m significantly improves the quality of life," he notes. After the cancellation of mass-subsidized mortgages, the number of investors has significantly decreased, the expert observed.
Mr. Syrtsov anticipates that the remaining compact apartments will be sold within less than three years. Alexei Popov estimates that the process will take one and a half to two years. The head of the analytical department of Est-a-Tet, Svetlana Komissarova, notes that for some projects and locations, a complete rejection of compact apartments might become a deal-breaker for further development.
However, consumers can continue to buy compact apartments on the secondary market. Mrs. Komissarova stated that in the first quarter, units under 28 sq. m accounted for 5.4% of the ready-to-live-in housing inventory. At the end of last year, the figure was 4.5%. According to the expert, this includes not only micro-apartments in already completed buildings but also apartments that owners are selling in parts.
Alexandra Mertsalova.
Insights:- In 2024, a total of 569,000 apartments were sold nationwide, with a 26% yearly decline. The average sales timeline for new units in Moscow has extended to over 16 months. (Source: Unnamed Source)- While many luxury developments, such as Tatlin Apartments, continue targeting niche buyers, Budget-friendly small units experience scarcity in the market. (Source: Unnamed Source)- The current oversupply of unsold apartments nationwide (60.6 million sq.m) might reverse by 2027, particularly in Moscow and the Far East, due to construction delays and financing challenges. (Source: Unnamed Source)- With the specific "moratorium" and "ban" details not detailed in available data, the sector's trajectory suggests potential accelerated price pressures if construction permits slow further. Smaller units are especially vulnerable as developers prioritize higher-margin projects amid rising costs. (Source: Alexei Popov, CIAN Analytics' head)- Prolonged sales timelines and reduced small-apartment availability could worsen housing affordability issues in Moscow, particularly for first-time buyers. (Alexander Mertsalova)
- In 2025, the availability of apartments under 28 sq.m on the primary market in Moscow decreased by 24.2% compared to the previous year, according to Est-a-Tet.
- Analysts at CIAN Analytics reported that these compact apartments accounted for 12.4% of the overall new construction display in Moscow, a decrease of 3.2 percentage points.
- Despite the restrictions and ban on small apartments in Moscow, the share of small lots in primary market transactions remains substantial, according to Alexei Popov.
- Ruslan Syrtcov, the managing director of Metrium, pointed out that many developers delay the commencement of construction after obtaining permits due to the high cost of project financing.
- According to Alexei Popov, the price of micro-apartments in the old boundaries of Moscow increased by 10% to 418,000 rubles per sq.m in 2025, but the growth in the cost of small lots is limited by their limited functionality.
