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

04 november 2011

2011-10-premium.jpgIntermarkSavills presents the overview "Moscow Elite Residential Markets for October, 2011". Which encompass the elite, business-class, out-of-town sales markets and rental market.

Few words about these markets for October, 2011:

Continued activation of customer demand in October, 2011 is natural: suspended summer demand switches into actual transactions.

New-built houses located in western districts of Moscow are still popular – more than one half of all the new-built transactions in October was concluded there

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

In October, 2011 consumer interest continued to shift towards more compact households. Growth in the number of new-built transactions for compact houses demonstrates that customers are most often ready to pay for a functional area of their country homes.

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

The market feverish again. Against a background of currency fluctuations owners are strongly trying to introduce contract clauses providing for a currency corridor and adjustment of rental rate, making efforts to replace rouble rates with dollar ones and therefore artificially increasing cost of apartments by 15%. In reality this does not work, only protracts negotiations and results in the increase of rental terms.

80% of tenants are represented by corporate clients; their budgets are formed in roubles and revised no more than once per 2 years. Generally, such rental contracts do not provide for a change of rental rate.

Galina TKACH, Director of Leasing Department, IntermarkSavills

Autumn months usually bring cheer to the elite housing market. The trend was replicated again this year,– all the key market indicators demonstrated positive dynamics in October.

Recovery of supply dollar prices continued – in relation to the market “bottom” reached in October, 2009 growth was over 46%.

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