Analysis of Strategic Trends of Factors Influencing the Moscow Real Estate Market

Abstract

The paper provides a strategic analysis of trends in the real estate market development in Moscow, which, in the author’s opinion, may indicate a strategic threat of the formation of an emergency period in the housing market of the capital city. The emergency period in the study refers to a period of cyclical growth in market prices, characterized by excessive investment due to long-term speculative expectations of investors. The residential real estate market is one of the most important socio-economic areas, reflecting the well-being of the population, as well as influencing many significant industries in Russia. Any disturbances and shocks regarding real estate prices can lead to social unrest among the population and, as a result, a deterioration in their quality of life. Apart from that, the real estate market is closely connected with the construction industry, which is one of the powerhouses of the Russian economy. To prevent instability in the housing market, national and regional strategies should consider its sustainable socio-economic advancement as a national (regional) strategic priority. The purpose of the study is to identify some strategic trends that are necessary for analysis at the forecasting stage at the beginning of the strategy formation process. The article shows that some emerging strategic trends point to the existing likelihood of an emergency period in the housing market in Moscow, however, the strategic management tools implemented by the government and the banking sector effectively resist its occurrence, as well as other external factors.