The Bank of Russia's July "Regional Economy" report indicates a slowdown in Dagestan's residential real estate market during the second quarter of 2025.  

This decline is attributed to decreased consumer interest in both subsidized and conventional mortgage products. Consequently, reduced sales have prompted some developers to revise construction timelines, with certain projects experiencing delays. The waning demand can be largely attributed to the termination of the non-targeted preferential mortgage program, which previously fueled market activity, coupled with an oversupply in the market.

Despite this downward trend, prices for new residential properties remain stable, according to DOM data. In the first half of 2025, Dagestan saw a 7% reduction in newly commissioned multi-family housing compared to the same period in 2024, totaling 206 thousand square meters. This trend mirrors a nationwide decline of 4% in new housing construction. The report's findings are based on statistical data and insights gathered from over 350 companies actively involved in monitoring economic activity within the region.