Russian real estate developers handed over 93 percent of new apartments with construction defects last year, according to data from research company Analytics Business Law.
Industry analysts expect the proportion of flawed housing deliveries across Russia to remain between 94 and 95 percent over the next five years.
The high rate of construction flaws followed a national building moratorium introduced in March 2024 that ran until the end of 2025. The measure temporarily restricted home buyers from collecting financial penalties from developers for delayed completions or substandard work. Although the moratorium ended, the Russian government granted real estate firms a deferral on paying accumulated fines until the end of 2026. However, penalties stemming from new claims filed by apartment buyers in 2026 will not be subject to payment delays.
Apartment buyers who repair defects independently or through hired contractors can seek immediate compensation if they prove their expenses in court. Buyers who have not yet repaired construction defects must wait until 2027 to collect financial damages for past years. Analysts at Analytics Business Law warned that the legal protections have made developers overly relaxed, turning defective apartment handovers into a market norm and threatening buyer confidence in newly constructed housing.
Developer defense and debt burdens
Ivan Bogatov, the owner and chief executive officer of Dobro Group and an expert in territorial development, rejected claims that the moratorium caused quality to collapse. He stated that the regulation merely postponed fine payments while leaving buyers free to demand immediate repairs or reimbursement from developers.
Ruslan Syrtsov, the managing director of real estate agency Metrium, said the temporary pause served as an anti-crisis tool to protect developers from bankruptcy while central bank key interest rates remained high. Ekaterina Avdeeva, chairman of the board of directors at Astorius Real Estate Corporation, noted that 19 percent of construction companies delayed building handovers last year because of short working capital. She said the payment pause enabled firms to finish projects that risked becoming abandoned sites.
Russian Deputy Prime Minister Marat Khusnullin previously cited the 19 percent delay figure in mid-2025. In early 2026, Khusnullin reported that property developers had accumulated 100 billion rubles in unpaid fines during the moratorium period. At a meeting organized by the Ministry of Construction, major developers stated they were prepared to settle their outstanding debts. Khusnullin noted that while many buyer claims regarding poor construction quality were justified, some cases resembled consumer extortion orchestrated by legal firms. Avdeeva added that postponing financial penalties created an irresistible temptation for builders to hand over unfinished properties.
Freezing walls and mould in luxury complexes
Quality control failures have affected both low-cost housing and premium developments across Russia. Buyers of properties built by St. Petersburg-based developer LSR Group have been forced to file court claims to compel the company to repair structural flaws. In Yekaterinburg, residents reported that freezing exterior walls kept indoor winter temperatures between 15 and 17 degrees Celsius, with regional news outlet Versia reporting that the developer failed to resolve the issue for years.
Yulia Yuryeva, a legal representative for affected Yekaterinburg residents, said homeowners conducted thermal imaging tests in spring 2023 and submitted formal claims to LSR Group. Yuryeva stated that the developer repaired only surface issues, such as removing mould and re-gluing wallpaper, while ignoring structural defects. Residents in buildings on Zavodskaya Street, Shefskaya Street, and Shirokorechenskaya Street accused the developer of modifying approved architectural designs by omitting exterior wall insulation, causing walls to crack, freeze, and foster mould growth.
Similar quality disputes surfaced at LSR Group's luxury Neva Haus development in St. Petersburg, where apartment prices start at 57 million rubles. Completed in 2023, the complex faced owner complaints by 2025 over degraded parking areas, poorly maintained playgrounds, and delayed waste collection. An independent expert inspection commissioned by residents confirmed corrosive mould in entrance halls caused by dampness, roof leaks, flooded basements, and cracked walls.
Construction delays and contractual disclaimers
Samolet Group, a major developer that faced financial distress and bankruptcy threats in 2026, experienced extensive delivery delays. Frustrated buyers at the Ostafyevo residential complex attempted to storm the developer's office last year after receiving automated response messages, having already vacated previous rentals. Telegram channel Domostroy reported in June 2026 that buyers in building 17 faced a revised completion date of September 2026, bringing their total wait time to 16 months. By February 2026, delayed handovers accounted for 26 percent of Samolet Group's total project portfolio.
FSK Group saw its share of delayed completions reach 6.5 percent by February 2026. Buyer Irina reported purchasing an apartment in FSK's Rotterdam complex under an equity participation agreement with a six-month installment plan. Upon moving in, she discovered scratched window panes, a slanted load-bearing wall, damaged front doors, and defective air conditioning. When the building received operational approval, FSK asked her to sign a revised preliminary sales agreement containing clauses stating that the developer was not obligated to repair wall cracks or broken windows. Irina said the company refused to explain the contractual additions.
Another buyer, Alexandra, submitted a review on real estate site Novostroev in August 2025 regarding FSK's Rimsky Kvartal complex in Moscow, reporting leaking roofs, flooded parking facilities, and failing elevators. At Samolet's Pyatnitskiye Luga development in Moscow Oblast, a report broadcast by television channel Moskva 24 showed apartments filled with construction rubble, paint buckets, and plaster. Construction crews were using unsold private apartments as temporary barracks with beds and drying clothes, while unaddressed water leaks caused pipe mould. In autumn 2025, news channel Shot reported similar issues at MR Group's Eco Vidnoye 2.0 complex, where buyers waited six months for keys while workers occupied unfinished units.
A television report broadcast on Rossiya 1 highlighted structural flaws at MR Group's high-end MOD complex in Moscow, including shaky interior walls, thin floor screeds, and window gaps. Homeowners stated that the developer pressured them to sign backdated acceptance certificates before January 1 to avoid statutory delay penalties. Premium developer Sminex faced complaints at its Kvartal Foriver complex in Moscow, where a resident reported that rain flooded lower apartments through upper balconies. The resident noted that cargo elevators were non-functional, interior layouts prevented installing washing machines deeper than 35 centimeters, and Sminex refused to disclose the original engineering plans.
Cost-cutting and standard construction flaws
Sofiya Lyubimova, founder of the Lyubimoe real estate agency, said property handovers now routinely involve documented defects such as drafty window frames, uneven walls, and hasty interior finishes.
Avdeeva explained that developers implement cost-cutting measures during the final construction stage before handover, particularly in economy and comfort-class housing where profit margins are narrow. She noted that while minor finishing defects and engineering flaws are widespread, severe structural failures like cracked load-bearing walls remain rare.
Arseny Drozhalin, chief executive officer of luxury builder Digniori Arts, said construction quality has dropped significantly across his 15 years in the premium sector. Drozhalin stated that developers reduce spending on common areas, fire escape stairwells, and utility rooms while protecting building facades.
Lyubov S., a homeowner who moved into a newly completed apartment in February 2026, told journalists that her kitchen ventilation failed to function, the shower leaked onto the bathroom floor, and the toilet smelled of mould.
She reported scratched window glass, embedded metal welding slag, drafty entrance doors, and a broken interior door lock that trapped her two-year-old child inside a room. The apartment management company refused to repair the doors or windows under their three-year warranty, claiming the damage resulted from improper use and offering paid technician visits instead. The owner eventually replaced the lock himself using online instructional videos.
An anonymous resident in a corridor-style apartment building reported constant elevator noise and sound transmission through thin hall walls, forcing residents to install heavy front doors to block hallway conversations.
Real estate news site Vseostroyke noted that widespread reliance on monolithic reinforced concrete provides structural strength but delivers poor sound insulation. Irina Kran, head of conceptual design at Strana Development, recommended installing double- or triple-pane glass windows with four-to-six millimeter glass to reduce street noise by 35 to 45 decibels.
Regulatory supervision and worker shortages
Syrtsov stated that all residential developments in Russia must pass inspection by the State Construction Supervision agency, known in Moscow as Mosgosstroynadzor, before receiving occupancy permits. He argued that high defect figures reflect comprehensive inspection reporting of minor cosmetics like door scratches rather than hazardous building failures.
Kirill Stepkin, public relations director at ECOOKNA Group, acknowledged that technical supervision standards vary across regions and contractors. Industry experts disputed forecasts that buyer demand would shift away from new builds toward existing resale housing. Drozhalin and Dobro Group representatives emphasized that property prices and mortgage terms remain the primary factors driving home buyer decisions.
Bogatov noted that building quality is measured against official Building Codes and Rules, known as SNiP. He estimated that nearly 100 percent of current equity construction projects feature deviations from SNiP standards due to declining worker and managerial qualifications. Bogatov explained that Russian law previously permitted buyers to reject handovers over minor defects, encouraging legal claims. Recent legislative updates established legal distinctions between minor flaws and substantial defects that render housing uninhabitable, such as missing utility connections, structural wall bends, or severe mould.
Real estate analyst Anna Zelenskaya stated that rising construction material prices and increasing labor costs forced developers to cut operational expenses. She explained that developers increasingly rely on low-cost, unskilled construction workers, leading to improper window installations, uneven floor screeds, and faulty utility assembly across mass-market panel and monolithic projects. Drozhalin added that developers lose interest in completing outstanding repairs once the majority of units in a complex are sold, delegating warranty issues to property management firms.
Real estate professionals advise home buyers to hire professional acceptance engineers equipped with specialized diagnostic tools to identify hidden defects before signing handover documents. Stepkin and Zelenskaya recommended that buyers set aside funds in advance to cover professional inspection fees and initial home repairs, as reduced government mortgage subsidies continue to compress the broader real estate market.
