IntermarkSavills presents analysis of the Moscow Elite Residential Markets, III quarter of 2010.

15 october 2010

IntermarkSavills presents the overview "Moscow Elite Residential Markets, III quarter of 2010".Which encompass the elite, business-class, out-of-town sales markets and rental market.

Few words about these markets in the III quarter of 2010:

«Even with reducing supply in Moscow approximately 330 apartments in new-build elite housing projects were sold during the three quarters of 2010. This is more than the whole of 2009. This growth in demand combined with the shortage of supply has caused dynamic growth in prices in this segment of the residential property market. Since the start of 2010 prices have risen by 23%...»

Dmitry KHALIN, Head of Strategic Consulting and Valuation Department, IntermarkSavills

During the nine months since the start of this year we have observed a gradual growth in rent rates and an increase in the budgets of potential tenants. However, an analysis of closed transactions during this period shows that the major share still remains within a price range of up to $4,000, indicating that the effective demand remains low.

Galina TKACH, Head of In-town Residential Real Estate Department, IntermarkSavills

Trends seen on the high-budget country housing property market since the beginning of 2010 continued during the third quarter of 2010: prices gradually grew, and the number of transactions was much greater than during the peak of the crisis. More activity on the market made it possible for new projects with interesting concepts to enter the market...
Today the country property market is more predictable for the buyer: he or she has the time and the possibility to contemplate the decision, consider risks, and explore the market. Increased transaction budgets signify that buyers know for sure what kind of house they would like to have and they are ready to pay for quality and comfort.

Olga VINOKUROVA, Senior Analyst of Marketing and Market Monitoring Department, IntermarkSavills

The number of closed new-build transactions in business-class residential complexes during the three quarters of 2010 exceeded the level of the same period in 2009 by 20%. Average dollar prices went up by 7%. It is evident that the ‘market bottom’ in this segment of the residential market has been reached and a gradual recovery is starting…

Dmitry KHALIN, Head of Strategic Consulting and Valuation Department, IntermarkSavills