What changes to expect in the price of Moscow apartments

In the elite apartment rental market in Moscow, including in the second market, always the decisive leading role is played by a certain exclusivity from the context of the common market trend situation of the object for sale, about which realtors constantly They constantly remind

Alexander Ziminsky, who is the Director of the elite Real Estate Department of PENNY LANE REALTY: “In the second half of 2006 we observed a small reduction in demand. The reason is: massive SMI campaign in the media, combined with the implementation of the program “accessible room”.

At the end of last year, even buyers of apartments in Moscow of the deluxe real estate class expected price reductions; however, no changes occurred in this market segment. Now a number of transactions grew strongly due to delayed demand from the last months of last year. The demand for apartments in Moscow, which by all parameters corresponds to the high demands of our customers, as before, considerably exceeds the supply, and we do not see any prerequisites for changing the situation.

The number of Moscow apartments of a deluxe class is limited therefore – a serious shortage of construction works in the center of Moscow. At the end of 2006, only a little more than usual, so-called “investment” apartments were offered for sale, but these proposals were numbered and did not have any serious influence on the situation. In fact, if it is assumed that in the elite clubhouse seven of the 30 apartments will be bought for investment purposes and all will be offered for sale, the situation on the market will mainly not change.

Over the last year of 2006, prices for apartments in Moscow increased on average by 30-80%, but there are apartments whose price increase was 100%. Today we have offers where the prices of a square meter exceed 35,000 US dollars.

For the sake of fairness, it is worth noting that not the entire volume of the proposal enjoys unconditional demand from buyers. Whoever is ready to dispose of exclusive apartments for a considerable sum of money, wants to get a “turnkey” apartment. In addition, the demand is for apartments with very high-level redevelopment (facing materials only of foreign production, often to special order, and an author’s project is required with the attraction of now and then well-known designers), he emphasizes. Alexander Ziminskiy.

The cost of a repair starts from $ 1 thousand per 1 sq. m., but these investments absolutely reasonable, since with the investment of $ 2-3 thousand for 1 sq. Mister. seller in the implementation can freely add up to $ 7-8 thousand, and sometimes even more. This is coupled with the fact that offers for quality remodeled apartments are limited. Alexander Ziminskiy: “In the first months of 2007 we observed an increase of 3-5% per 1 m2 per month.

Politics will in many respects determine the situation on the real estate market. It goes without saying that prices for elite real estate in Moscow will continue to grow, but at a slower rate than in previous years. Now we observe the formation of a more active demand after the calm of the end of 2006. The summer will be traditionally calm, and in the autumn on the eve of the elections we should not expect sharp changes in the relationship between supply and demand either. Feel free to visit my website at.