IntermarkSavills presents analysis of the "Moscow Elite Residential Markets for III Quarter, 2011".

03 october 2011

business_Q3_2011.jpgIntermarkSavills 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.

Against the background of increasing customer interest and increase in the constructional completeness of key projects, there is an objective growth in the average dollar and ruble market prices since the start of the year– by 8.5% and 10% respectively.

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

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.

The total cost of houses sold in Moscow region during the 3rd quarter of 2011 was more than USD 240 million. The weighted average price for a villa sold was about USD 1 million, for a townhouse – USD 0.5 million. More than half of all transactions in the 3rd quarter of 2011 were for townhouses situated at a distance of less than 15 km from the MKAD.

Olga VINOKUROVA, Senior Analyst of Strategic Consulting and Valuation Department, IntermarkSavills

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’.

Galina TKACH, Director of Leasing Department, IntermarkSavills

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