IntermarkSavills presents analysis of the "Moscow Elite Residential Markets, 2010 results, forecast for 2011".
05 february 2011
IntermarkSavills presents the overview "Moscow Elite Residential Markets, 2010 results, forecast for 2011".Which encompass the elite, business-class, out-of-town sales markets and rental market.
Few words about these markets:«In 2010 the Moscow new build business-class property segment began its gradual postcrisis restoration – the number of completed new-built transactions is 18% higher than in 2009, average prices increased by 9% in US dollars and 5 new projects have been released into the market. However, as compared to pre-crisis fi gures, today’s business-class property still looks quite modest – the number of apartments sold during the year is 5-7 times lower than during the ‘golden’ years – 2006-2008. Investment demand, which previously had accounted for up to 40% of transactions, sank almost to zero. Most of today’s buyers of business-class apartments tend to minimize the risk of unfi nished construction and therefore prefer either practically completed residential complexes or look for options in the secondary market...»
Dmitry KHALIN, Head of Strategic Consulting and Valuation Department, IntermarkSavills «During 2010 approximately 430 apartments in elite new-build residential complexes were sold in Moscow. In 2008 almost the same number of new-build transactions were closed. It is obvious that the market is starting to revive and has returned to pre-crisis demand levels. The growing demand together with the limited supply caused a dynamic increase of prices in the elite segment. According to our estimates, at the end of 2010 the average price of a square meter in new-build elite residential complexes was 16,900 USD per sq.m. Over the year dollar prices have grown by 35% and now lag behind the pre-crisis maximum level by 26%. Average prices for elite apartments have grown for 14 months in a row. According to our estimates, in 2011 the trend will remain...«
Mikhail GAVRILCHUK, Head of New-Build Sales Department, IntermarkSavills
«During 2010 supply exceeded demand on the new-build elite country property market.
The majority of transactions were closed for ‘riskless’ completed property. Customers
bought in-community houses at early stages of construction only from reputable developers
who had successful experience in country projects.
«During the entire year conditions remained stable with reasonably strong demand. We
observed a heavy defi cit of marketable offers. There was a shortage of two- and three-room
apartments within a budget range of USD 2,500 – 5,000 per month located in the most
popular districts of Moscow, as well as large apartments (4 bedrooms and more) within a
budget range of USD 10,000 – 16,000 per month. It appears that this trend will continue
in 2011, with an inevitable growth in prices for such properties.«