The Pricing Formation in the Real Estate Market in Russian Regions

In recent years, the real estate market in Russia has seen price fluctuations in various regions of the Russian Federation, which are due to the influence of economic and socio-demographic factors, and in general, apartment prices have been rising over the past 10 years. The purpose of this study is to analyze the influence of various factors on the formation of prices in the primary real estate market and to promote informed and effective decisions aimed at developing a sustainable real estate market in Russia. The analysis of the dynamics determination factors of real estate prices is important for both investors and government regulators. The paper uses a fixed effects model to analyze the impact of both socio-demographic and economic factors on pricing in the primary real estate market. The factors of income, unemployment, fertility, marriage, life expectancy, the share of the working-age population and migration rates by age are taken for consideration. The study finds out which factors are significant, how and to what extent they influence prices in the real estate market.