IntermarkSavills presents analysis of the "Moscow Elite Residential Markets for III Quarter, 2011".
03 october 2011
IntermarkSavills presents the overview "Moscow Elite Residential Markets of the III Quarter, 2011".Which encompass the elite, business-class, out-of-town sales markets and rental market.
Few words about these markets in III Quarter, 2011:
In September, 2011 the number of new-built transactions for apartments in new business-class developments was 150. That is largest amount recorded over the last 3 years. Therefore, as of the end of the third quarter of 2011 the average number of new-built transactions concluded in Moscow business-class housing market per month was 135, which is 35% more than in 2010 and 60% higher than 2009.
During the first three quarters of 2011 the number of new-built transactions for the highest-price country properties was only half of the indicator recorded in the previous year.
As of the end of the 3rd quarter, 2011, the elite residential rental market of Moscow remains quite stable. However, there is evidence to show a considerable disparity between rental rates and the average budgets of tenants. Thus, during the last 9 months rental rates and supply budgets have increased by 10% and 14% respectively and have already exceeded pre-crisis levels. At the same time, the average budgets of potential tenants have steadily decreased since the 2nd quarter of 2011. No doubt, such a disparity will result in a further increase in the deficit of realizable projects and the creation of an ‘owner’s market’.
In September 2011 the average rouble price in the elite housing market exceeded the pre-crisis maximum by 7% and was more than 570 ths. RUR/sq.m. The average dollar price remains Summer 2011 levels – 17,600 $/sq.m, which is determined by the considerable fluctuation of currency exchange rates.Dmitry KHALIN, Head of In-Town Residential Real Estate Department, IntermarkSavills