The monitoring presents the results of the residential and commercial real estate market of Moscow and Moscow Region in November 2010.
The elite primary market of Moscow enlarged with new supply in November 2010. The average price for apartments in elite new buildings grew versus the previous month, while in the secondary market it remained at the same level. Demand in the elite residential market is stable.
The Moscow Government is still the main newsmaker in the commercial real estate, the majority of initiatives of which are focused on the solution of the most acute city problems: the implementation of the “Moscow-City” MIBC project, transport problems, etc.
The opening of the “Gagarinsky” retail-entertainment center at Vavilova street became the main event of the professional retail real estate market in November. The opening of another retail center – “Afimall City” (the former Mall of Russia) in the “Moscow-City” MIBC is expected by the end of 2010.
There were no important events in the hotel market of Moscow in November. The plans of construction of hotels for long-distance truck drivers in the structure of warehouse complexes beyond MKAD were announced in the current month. Besides, it was stated that the opening of the Marriott Courtyard Paveletskaya hotel at Paveletskaya square would be shifted to 2011
In November 2010 the delivery of new countryside settlements was in progress in the countryside residential real estate market of Moscow Region. It should be noted that the number of new projects delivered to the countryside residential market of Moscow Region in 2010 has already exceeded the number of new projects delivered to the market during the whole 2009 by 8%. As far as the average level of prices for the countryside residential properties of Moscow Region concerns, it remained unchanged in November 2010. However, minor price reduction could be observed in several properties due to the pre-New Year sales promotions and discounts, the amount of which varies from 5 to 30%.
Approximately 1, 000 apartments were offered for sale in 33 residential complexes in the elite primary market in February 2011. The largest supply volume was concentrated in Khamovniki and Tverskoy districts. In February, the market enlarged with a new elite residential complex “Barkli Virgin House”, located in 8/9, 1st Zachatievsky per. (Khamovniki, Ostozhenka). The club house was designed for 21 apartments, including 2 penthouses, it has its own adjacent territory and underground parking.
The supply volume in the Moscow elite primary market amounted to approx 147, 9 thous. sq. m. of residential space in 29 residential complexes in August 2010. The largest supply volume (more than 80%) could be observed in such districts as Khamovniki, Tverskoy, Presnensky and Zamoskvorechie. The market experiences supply volume reduction as before: the most liquid offers leave the market gradually, some new buildings are temporally off sales as before, new properties do not enter the market. As far as demand is concerned, August 2010 was characterized by the lowest buying activity in comparison with the previous months of the year. The number of incoming requests to Blackwood for the purchase of apartments decreased by 27% in August in comparison with the previous month. The last summer month is traditionally characterized by the lowest supply indicators due to the vacation season, and this year situation worsened by abnormal weather conditions, which caused buyers’ reduced interest in apartments selection. Supply recovery is expected for the middle of the autumn. In August 2010 average price for elite new buildings amounted to $17 400 per sq. m. The most expensive new buildings in August 2010 were traditionally offered in Ostozhenka-Prechistenka ($ 24,540 per sq. m.), Presnensky …
According to official data, 5.25 mln. sq.m. of residential space were commissioned in Russia for the first two months of 2011, which is 11% lower than in the corre-
sponding period of the previous year. On the whole, 63 mln. sq.m. are planned for commissioning in 2011. Only 62.4 thous. sq.m. were delivered in Moscow for January-February 2011 (35% of the indices of the analo-
gous period of 2010). According to the preliminary data of Moscow state statistics, approx 200 thous.sq.m. were de-
livered for the whole Q1 2011 in Moscow, which is 60% lower than the indices of 2010 and constitutes less than 10% of the total volume of residential space, planned for commissioning in 2011 in Moscow. On the whole, accord-
ing to the plans of authorities, 2.7 mln. sq.m. of residential space will be commissioned in the capital in 2011. The primary residential market in Q1 2011 is charac-
terized by rather active delivery of new projects. This trend was typical of the whole 2010. However, if in 2010 economy-class properties prevailed in the market, then the new supply, which enlarged the market in Q1 of the current year, was represented by the properties, belong-
ing to different segments of the market. As of 2011, the supply volume in the primary market of Moscow amounts to almost more than 200…