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How is the Russian interior market developing?

The Russian market for interior design is relatively young. But there are already a lot of drivers for its development: the growth of the construction market, the demand for housing in all segments of the market, mainly in Moscow and St. Petersburg, the change in the consumption culture, the increase in demand for creating comfortable conditions in apartments, and the expansion of the market of finishing materials and interior items. 

However, there are a number of factors in the market that can both strengthen and reduce the pace of development of the market for interior items. One thing is known, the development of the market of professional services in the field of design and decor of living spaces is important for the development of demand in the market of interior items. Despite the fact that the buyer gets ready-made space for living, interior and decor items will still be purchased. 

On the other hand, over the last 2-3 years, the demand for the purchase of residential real estate with a finishing design has significantly increased in Moscow. At the same time, it is not very popular among Moscow buyers of business-class apartments in comparison with regional buyers, because they want to implement their own design solutions. Buyers of residential properties in the regions of the Russian Federation and those who acquire real estate in Moscow and St. Petersburg from the regions prefer apartments with finishing design (especially in Yekaterinburg, Perm and several other cities of Russia). For regional buyers, apartments with decoration are important for a number of reasons. 

About 85% of housing is sold in a mortgage, and people sometimes do not have enough money for decoration and design. The desire to enter the apartment and start living without repairs both in the apartment itself and its neighbors begins to prevail. Also, buyers are attracted by the possibility of saving on the design service itself and the choice of finishing materials and furniture. According to the developers, buyers of apartments, in this case, will remain in the benefit, because will be able to save, for example, only on furniture up to 45% of its retail price due to the fact that furniture manufacturers will be able to reformat production and provide standard models and ready-made design solutions. 

It is assumed that in the near future, developers at the legislative level will force the commissioning of apartments ready for living. Accordingly, for manufacturers of finishing materials, this will become a kind of competition, which will undoubtedly lead to a change in distribution channels and sales of products. Despite the fact that the market of finishing materials will not be able to grow at a high rate (only individual brands that will be used in the design by the developer), this will reduce the gray market of finishing services. 

According to the forecasts of VerveWay partner Olga Musina, the market for interior items will continue its development in all market segments, and the development of this market will exceed the growth rate of the market of building and finishing materials. If the current economic situation will remain stable and even positive in the next 3-5 years, the market will grow by at least 6-8% per year.

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