While bitcoin has grown by 128% since 2015, the housing market in Moscow lost its status as a reliable investment instrument with the rapid price decline. Experts suggest the cryptocurrency to be a safer asset.

Housing prices in Moscow have lost 7.8% in rubles and 10% in dollars over one year. The decrease goes on for the second year in a row, and other financial instruments, including bitcoin and gold, look like much more attractive investments. Calculations of Finam Holding analyst Timur Nigmatullin revealed that since 2015, investment return in EUR added +1%, in USD +6%, in bitcoin + 128%, in gold + 16%, and MICEX index increased by 32% (including dividends), reports KO.RU.

The long-term decline destroyed the old investment strategy based on the idea that real estate in Moscow is always in demand, and analysts do not expect the trend would change in the near future.

“House prices may remain that low for at least five years, unless something changes,” said Moscow Real Estate Prices Map analyst Alexander Pypin.

A similar opinion has been voiced by managing partner of the Moscow real estate agency "Metrium group" Marina Litinetskaya. She believes one should hardly expect an explosive growth of real estate market in the capital.

“Prices will rise gradually, and there will be no rebound similar to what we observed after the crisis in 2008,” Litinetskaya commented.

Last week, CoinFox reported that Russia once again cracked the record for weekly bitcoin trading volume on the LocalBitcoins exchange, which exceeded $3.3 million. The previous all-time high of $2.9 million was recorded on 2 August. Overall, bitcoin trading volume in Russia increased by 7% over one month and threefold since the beginning of the year.

Lena Gabdullina