IntermarkSavills presents price forecast for elite real estate in Moscow and Moscow region in May 2009
14 may 2009
Price forecast for elite real estate in Moscow and Moscow region in May 2009.
In April 2009 the price situation on the elite real estate market in Moscow region developed in accordance with the IntermarkSavills forecast for up to 2011.
The key macroeconomic parameters taken into account when making a forecast for property prices (inflation, US dollar rate, world oil prices, etc) remained in line with the conservative-optimistic scenario of the RF economic development.
In April 2009 the average prices on premium-class real estate in Moscow declined by 2,4% as compared to the previous month. Thus since the beginning of 2009 the prices in this segment have gone down by total 10,8%.
IntermarkSavills forecast negative price dynamics on the elite real estate market in May 2009. However, the rate of decline will slow down as compared to April and will not exceed 1,0-1,5%. The main reasons for such a decline are long holidays and a general decline in market activity traditional to the market at the end of spring – beginning of summer.
Prices on premium class countryside real estate (cottages and townhouses) remained at practically the same level in April 2009. Since the beginning of 2009 prices in this market sector have gone down by 11,4%.
According to IntermarkSavills forecast price stabilization on the market of elite countryside real estate will continue. The majority of developers and realtors will not cut prices significantly at the beginning of the summer season hoping for market reanimation in May-June.
Summing up the results of April IntermarkSavills confirm the intermediate-term forecast made earlier for negative price dynamics on the elite real estate market in Moscow region which may lead to a further 12-15% decline in average prices both on city and countryside real estate by the end of 2009.