- Demand for luxury apartments in Moscow has grown significantly
- Barkli park
- Barkli Virgin House
- Residential complex “On Trubetskoy”
- Skuratov House
- Prices for luxury housing are stable, no sharp rise is expected
Elite housing in Moscow after overcoming the crisis is gaining more and more popularity. If earlier this segment of the market was in little demand – buyers were more interested in economy and business class housing, then according to the results of the first quarter of 2011 there was a noticeable revival in the capital’s elite residential real estate market.
Alexander Benois. House of Anna Mons in the German settlement. 1909
The volume of transactions, according to some leading Moscow real estate agencies, increased by 12.5% in the first three months of this year. It is also natural that, due to the increased demand, prices for elite housing also went up somewhat, however, the growth is quite insignificant..
Demand for luxury apartments in Moscow has grown significantly
Analysts at Penny Lane Realty noted that the first quarter of 2011 was marked by an increase in the total demand for luxury housing in the capital. According to them, demand has grown by as much as 15%. If we consider the structure of demand depending on the cost of apartments, then 50% of the total demand falls on the segment of objects in the budget from 1 to 5 million dollars, 25% were transactions in the budget from 5 to 10 million dollars, 20% and 5% were respectively transactions worth from 10 to 15 million dollars and over 15 million dollars. The demand for elite housing in new buildings still at the initial stage of construction increased by 13%. Among such objects are elite residential complexes: Knightsbridge Private Park, Barkli Virgin House, Garden Quarters, and Tsvetnoy Boulevard 13.
If we look at the formats of residential properties in demand at the moment, then the demand for lofts (living quarters on the uppermost floors of buildings, sometimes this is called attic living quarters) has increased by 25%, the area of which is up to 100 sq. m. At the same time, the demand for multi-room elite apartments, penthouses and apartments without finishing, which are offered in the secondary market decreased by 4%.
As explained by Alexander Ziminsky, head of the sales department of elite real estate at Penny Lane Realty, now most potential buyers are mainly interested in high-budget real estate or objects at the initial stage of construction, when their prices are still quite low, or they prefer apartments that are already completely ready for living – with good repair.
Kapiton Zelentsov. Living room in a city house. 1820
If we consider business-class housing, it should be noted that the first three months of 2011 are characterized by an increase in the total demand for such housing at the level of 7%. At the same time, about 30% of all completed transactions for the sale of such objects occurred in the price range of up to 700 thousand dollars. Approximately 50% of transactions were concluded in the range from 700 thousand to 1 million dollars. The remaining 20% of the total number of transactions fell on transactions with a budget of over $ 1 million.
The outlined dynamics of an increase in the aggregate level of demand for apartments in the elite segment of real estate is associated, first of all, with the improvement of the general state of the economy in the country, as well as with the restoration of effective demand. Also, a significant impact on the general market situation in this sector is also exerted by the fact that currently few new properties are offered on the primary market of elite residential real estate in Moscow..
4 new properties in the primary elite residential market temporarily stabilized the market situation.
According to the results of the 1st quarter of 2011, the aggregate supply in the primary elite housing market increased by 22.4%. This growth in supply is due to the introduction of four new properties to the capital’s real estate market – these are residential complexes: Barkli Park, Barkli Virgin House, Na Trubetskoy and Skuratov House.
The premium class residential complex Barkli Park, which is being built at 6, Sovetskaya Armii Street, includes as many as 130 apartments, as well as a multi-level modern underground parking. The developer has also planned the construction of a large-scale sports center and a special entrance to the nearby Ekaterininsky Park on the adjacent territory. The total area of the house is 42 thousand square meters.
Barkli Virgin House
The Barkli Virgin House complex, located at 8/9 Pervy Zachatievsky Lane, provides 21 apartments. Including buyers are offered 2 penthouses, as well as a spacious underground parking. This house is distinguished by a large landscaped adjacent territory in the Ostozhenka area, which includes a spacious children’s playground. The total area of the complex is about 4.9 thousand square meters.
Residential complex “On Trubetskoy”
Elite residential complex “On Trubetskoy” is located at st. Trubetskaya, 28, bld. 2. The total area of this complex is about 38, 3 thousand square meters. The project stipulates that the construction of the house will be completed by July 1, 2013. The complex will have about 90-100 apartments, which will be located in separate sections of different heights from 10 to 12 floors. It is planned to build an underground parking with an area of more than 7.8 thousand square meters for 288 cars, as well as a sports and recreation complex for children.
The elite residential complex Skuratov House, which is being built at 11 Burdenko Street, was to be completed in 2009, then the construction was frozen, and now the deadline for commissioning the facility and putting the building into operation has been extended until the end of 2011. The residential complex Skuratov House consists of 32 apartments, which are located in 2 residential sections with 5, 10 floors. The complex also includes a 2-storey separate mansion. The area of residential apartments varies from 107 to 320 square meters. The total area of the complex is 12 thousand square meters. There is an underground parking for 94 cars. The project also provides for the construction of a children’s center for 330 places and a sports and recreation complex with a total area of 1.7 thousand square meters.
The entry into the primary capital market of new elite residential properties made it possible to maintain a balance of supply and demand, and also compensated for the adopted ban on the construction of premium-class housing in the center of Moscow. If by the end of 2011 several more objects of this level appear on the capital market, then, according to experts, in the next couple of years there will be no shortage of supply in Moscow and prices will also be stable and remain at the same level.
Prices for luxury housing are stable, no sharp rise is expected
According to the results of the first three months of 2011, the average prices for elite housing in new buildings in the capital increased by 1.7% – from 22,500 to 22,900 dollars per 1 square meter. In the secondary market: premium-class apartments have grown in price by 3%: from 25,900 to 26,700 dollars per 1 square meter. At the same time, such a rise in price is most likely due to fluctuations in the dollar exchange rate, which has recently significantly lost against the ruble..
According to Penny Lane Realty experts, the cost of elite housing in the first quarter of this year was also influenced by the fact that several new properties entered the primary market, in which 283 apartments are offered for sale. Since the prices for newly launched objects on the market are not yet very high, the aggregate average growth in the price per square meter in elite new buildings in the period under review did not exceed the current inflation rate in the country..
In general, we can say that the elite housing market in Moscow in the first quarter of 2011 revived somewhat. New properties that entered the market contained possible price increases and helped balance supply and demand. No sharp price hikes are expected, which is due to both the current market dynamics and the fact that the exposition of many elite apartments, as a rule, lasts for a rather long period, which also does not contribute to price growth. Probably, if such dynamics continue in the future, then this market segment will develop evenly and rather steadily..