Luxury real estate in Moscow is booming as Russia’s wealthiest citizens bring more of their money back home.
With international sanctions making it harder to invest abroad, many are turning to high-end properties as a safe place to park their wealth, writes Digi24.
Rising inflation and high interest rates have also pushed them to look for stable investments inside the country.
Ekaterina Rumyantseva, founder of Moscow-based luxury real estate broker Kalinka Ecosystem, says the pressure on Russian citizens worldwide is increasing.
More people now see their own country as the safest place to keep their capital. This shift is fueling Moscow’s luxury real estate market, even as other major cities like London and Hong Kong face slowdowns.
According to NF Group, formerly known as Knight Frank Russia, sales of high-end apartments in Moscow jumped nearly 40% last year.
Prices rose by 21%, bringing them to the level of cities like Paris and London.
New luxury developments are popping up across Moscow, offering glimpses into Russia’s uneven economy.
Government spending on the war has boosted economic growth, but it has also caused inflation and higher interest rates.
Sanctions have blocked many wealthy Russians from investing abroad, forcing them to find safe assets within the country.
One example is the Levenson project, a historic Art Nouveau residence designed by architect Fyodor Schechtel. Located near Patriarch’s Ponds, an area once visited by Leo Tolstoy’s family, the mansion was sold for 3.8 billion rubles ($38.1 million).
Other high-end projects are appearing in central locations, close to major landmarks and green spaces.
Demand is also strong in the suburbs. The Kamishy project, in Zhukovka on Moscow’s western outskirts, offers 11 two-story villas with modern designs.
Prices range from $25 million to $45 million, and five have already been sold.
Most buyers are business owners, top executives, and figures from IT, entertainment, and sports.
Many see real estate as protection against currency fluctuations. While some still buy property abroad, their presence in markets like Dubai is shrinking.
Back in Russia, high interest rates and rising construction costs could slow the market.
But cities like Sochi are now attracting wealthy buyers looking for new luxury investments.
