Russian real estate prices vary significantly from region to region. Government, financial sector, and large private businesses are concentrated in Moscow and St. Petersburg, inflating prices there. Private property prices in central Moscow are comparable with most expensive Western cities such as New York and London.
In Moscow, average property prices rose from US$700/sq.m in 2000 to over US$7 000/sq.m in 2008. Approximately half of that growth took place in 2006. Prices have started to rise in 2008 after a minor correction in 2007.
Other cities have experienced similar growth, although remaining more affordable. For example, in Ulyanovsk, average apartment prices grew from $300 per square meter in 2002 to $1100 per square meter in 2007.