IntermarkSavills presents analysis of the "Moscow Elite Residential Markets for 1st half, 2011".

15 july 2011

business_1st_half_2011_rus.jpgIntermarkSavills presents the overview "Moscow Elite Residential Markets for May, 2011".Which encompass the elite, business-class, out-of-town sales markets and rental market.

Few words about these markets for 1st half, 2011:

In the 1st half of 2011 demand in the new-built business-class housing market increased by more than 35% as compared to the same period in 2010 and amounted to about 130…140 transactions per month. At the same time this segment showed an ongoing growth in dollar prices: since the beginning of 2011 they have increased by 10% on average.

Generally, the market of new-built business-class houses demonstrates an ongoing reduction in supply – in one third of complexes under construction there are less than 10% of unsold apartments.

Dmitry KHALIN, Head of In-Town Residential Real Estate Department, IntermarkSavills

In 2011 developers brought to market several gated communities to suit a variety of customer demands and financial capacities. In each community its own product was offered: turn-key villas with an area between 300 and 600 sq.m, plots with construction contracts, townhouses or land plots without contracts.

Orientation at certain target audience is a feature of smart marketing policy and the only right strategy in prevailing market conditions…

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

With the supply constantly shrinking the most sought-after properties are apartments with a few bedrooms in Chistye Prudy, Zamoskvorechye, Leningradsky and Leninsky Avenue areas. It is also as difficult to find a similar apartment located in close proximity to international schools. The average tenant budget ranges from 6000 to 12000 USD.

Galina TKACH, Director of Leasing Department, IntermarkSavills

During the 1st half of 2011 the premium-class new-built housing market was supplemented by 6 new residential complexes (which is more than during the whole of 2010, when only 4 projects entered the market).

Over the last 12 months 21% growth was seen in the average price for the premium-class segment, and the current price of elite residential property (17,600 USD/sq.m) by almost increased 45% compared to October 2009 (market ‘bottom’).

Dmitry KHALIN, Head of In-Town Residential Real Estate Department, IntermarkSavills