Russian homebuyers shift from Moscow and St. Petersburg to the regions

Buyers Shift from Capitals to Russian Regions

Russian primary housing buyers are increasingly bypassing Moscow and St. Petersburg in favor of regional provinces. According to data from Cian, the share of real estate transactions in Russian regions has risen from 59% to 70% over the last five years.

The decline in the capital cities' share of total construction volume began in 2021. In the Moscow region, this figure dropped from 26.6% to 19.9% by mid-2026. The contraction was more pronounced in St. Petersburg and the Leningrad region, where the share fell from 13.1% to 8.4%.

Price Inflation vs. Falling Demand in St. Petersburg

The St. Petersburg market exhibits a disconnect between construction activity and buyer demand. While the city continues to develop over 5 mln m² of housing, buyers have only been found for 1.95 mln m²—leaving 60% of these areas unsold.

Despite falling demand, prices per square meter continue to climb. New buildings increased in price by 30.5% over the year, pushing the average purchase price for a unit to 17.77 mln rubles. In July, the price per square meter rose another 1%, reaching 383.05 thousand rubles.

Market supply is simultaneously contracting. The volume of available lots fell 1.3% to 33,810 units. Currently, sales are active across 248 projects, a 5% decrease compared to last year's figures.

Source: This article was adapted from an original Russian-language publication by Pravda.Ru.