Demand for luxury homes in Moscow has fallen to its lowest level in five years, according to research by real estate company NF Group.
The number of property sales in so-called elite new builds in the Russian capital fell 44% year-on-year, from 1,620 sales in 2021 to just 900 in 2022, the lowest number recorded for five years.
A drop off in demand in light of the "geopolitical situation" and the economic crisis was expected, NF Group analysts said.
"Given the current uncertainty many buyers have taken a wait-and-see attitude, postponing real estate acquisition, and in some cases canceling transactions altogether and taking the opportunity to relocate their families and businesses abroad," NF Group, previously known as Knight Frank Russia, said in a statement.
The assessment chimes with similar market estimates.
The Intermark Real Estate agency (formerly Savills) said last month that demand for luxury housing in Moscow has decreased 46% in the 10 months since the war in Ukraine began.
At the same time, the prices for luxury real estate have continued to grow, with the average price per square meter for elite real estate increasing by 14% to 1,530,000 rubles ($24,300) in 2022, according to NF Group.
The main reason for rising Moscow property prices was the high cost of construction, NF Group’s regional director Andrei Solovyov was cited as saying.