Moscow: lack of supply drives housing market rise

While the cold continues on Moscow's snow-slicked streets, apartment prices have stayed hot in the capital as the city's construction restrictions force high prices for elite apartments and unmet need keeps middle-class housing in demand.

What's more, while demand is putting pressure on both wealthy and middle-class buyers, it is piquing interest among developers, analysts said in interviews.

The top of the market — newly built or reconstructed apartments in the center — has been squeezed by Mayor Sergei Sobyanin's ban within the Third Transportation Ring. Since May 2011, Sobyanin has suspended the issuing of building permits in the city center and ordered a review of previously issued permits.

Source: TheMoscowTimes.com