Remaining Units at Federation Housing: 89 Apartments Still Unsold
The residential complex "Federation," managed by PROSPECT GROUP, is nearing completion with only 89 apartments remaining unsold. Yuriy Moiseenko, the General Director of PROSPECT GROUP, shared that they have "reached the home stretch" in the sales process.
Despite the progress, the residential market in Russia is facing a challenging phase. High interest rates have led to a 20% year-on-year drop in new residential project launches and an increase in delayed project completions. However, fundamental demand remains strong due to low housing availability and significant obsolescence of existing housing stock[1]. Investment in residential real estate has declined from 33% to 22% of total real estate investments, as funding has shifted towards commercial segments like offices and warehouses[2].
For projects like "Federation," challenges include navigating high interest rates that dampen demand and limit new investments, regulatory burdens that slow approvals and project launches, and the general market shift of capital from residential to commercial real estate investments. However, supportive measures such as regulatory simplification could help mitigate supply shortages and enable projects to proceed more smoothly when conditions improve[1][2].
The "Federation" complex is not immune to these challenges. Initially, there were almost 1000 unsold apartments, but with various perks available for clients, such as interest-free installments, a 9% discount, a free parking spot with the purchase of a 3-4 bedroom apartment, and a significant discount on parking with any apartment purchase, the sales process has been moving forward.
Yuriy Moiseenko, in a reflective mood, expressed a touch of sadness as the end of the sales process for "Federation" approaches, comparing it to the ancient Chinese blessing and a Russian poet's lines, suggesting they are relevant to current times. He also expressed a touch of humour, stating that one could miss significant events by merely napping for half an hour due to the rapid pace of change in current times.
Project declaration No 66-000743 is available on our.dom.rf, and everything was delivered on time for the residential complex. The article can be read further on DK.RU. LLC "Specialized Developer "PROSPECT FEDERATION" has an erid of 2W5zFGAcRhi.
As the sales process for "Federation" nears its end, PROSPECT GROUP is already looking forward to new, more ambitious projects. The residential market, including developments such as "Federation," is currently squeezed by high borrowing costs, reduced investment share, and regulatory delays, with potential medium-term price rises expected due to supply contraction[1][2][3]. Despite these challenges, the fundamental demand for housing remains strong, making it an exciting time for those involved in the Russian residential market.
References: [1] "Russian Residential Real Estate Market Outlook 2025" - JLL Research [2] "Investment in Russian Real Estate Shifts Towards Commercial Segments" - RBC News [3] "Average Price Increases and Premium Segment Growth in Russian Cities" - Cushman & Wakefield Report
Investment in the residential real estate sector has shrunk from 33% to 22% of total real estate investments, as financial resources are increasingly directed towards commercial segments like offices and warehouses. Despite these financial shifts, the fundamental demand for housing in the Russian market remains strong, due to low housing availability and significant obsolescence of existing housing stock.
