The largest demand portion remained within a budget range of up to $4,000 per apartment per month, accounting for half of the total quantity but is 7% less as compared to December 2010.
As of the end of January 2011 the quantity of supply in the high-budget rental segment had decreased by 4% as compared to the end of December 2010. So, as of the beginning of 2011 the agency forecasts a continuing reduction of open supply.
As of the end of January the weighted average budget of supply and the unit rental rate amounted to $6,479 per apartment per month and $614 per sq.m. per year which was 2% higher than the same indicators in the previous month. The growth in the average budget of supply as compared to the end of January 2010 amounted to 11%.
The predicted slowdown on the rental market caused by the long New Year holidays disappeared quite quickly, and as of the end of January demand exceeded the level of December 2010 by 8%. The average demand budget at the end of the month amounted to $5,199 per apartment per month and was 6% higher than the same indicator in December 2010.
As of the end of January the major demand share for rental apartments was accumulated in the Arbat-Kropotkinskaya area (23%), Tverskaya-Kremlin (12%), and Leningradsky Avenue (12%) areas. A significant decrease in popularity of the Patriarshiye Prudy area was registered this month: the demand reduced more than twofold compared to December and is less than 4% of the total quantity.
During January 2011, new-build sales were conducted in almost 150 high-budget Moscow Region villa community projects. No new projects selling villas, plots with construction contracts or townhouses were brought on to the market in this segment.
The number of out-of-town elite property transactions decreased by 30% in January 2011 as compared to December 2010. This was a predictable trend due to the small number of working days in Russia in January. The total number of high-budget villas and townhouse new-build transactions was 150 which was almost 30% greater than a year ago in January 2010.
Despite the predicted January slowdown in the number of transactions, project developers with the highest liquidity remain optimistic about the future and have announced an increase in prices for their properties in February, by an average of 5-10%.
“In those communities where sales were stable during December-January, prices were raised at the end of January. These are country complexes with extensive infrastructure offered by major developers and townhouse communities located closest to Moscow (up to 5 km),” commented Olga Vinokurova , Senior Analyst of Marketing and Market Monitoring Department of IntermarkSavills
During the first month of 2011 new-build sales were conducted in 28 elite houses and residential complexes under development (excluding MIBC “Moscow-City”). In January sales were completed in one project, and in another one the sales remain suspended. “Na Trubetskoy” residential complex (Trubetskaya Street, 28, bldg 2, 90 apartments) and Barkli Virgin House (1-y Zachatyevskiy per., 8/9, 21 apartments, so-called “closed” sales are currently in progress) were released into the new-build market.
In January 2011 the elite apartment new-build supply of grew (by about 5% as compared to December 2010) and totalled approximately 950 apartments for sale. This growth was caused by release of new projects and properties reserved earlier by the developers.
In comparison with December the number of elite apartment new-build transactions decreased by 30%. About 25 sales of new-build apartments were made during January 2011 (excluding MIBC “Moscow-City”).
The majority of closed transactions (75%) were for apartments with a floor area of up to 200 sq.m. The average floor area of an elite apartment sold in January was 170 sq.m. Most transactions for elite apartments (about 55%) were closed within a budget range of up to $15,000 per sq.m. and within a budget range of up to $3,000,000 per apartment (approximately 60%).
During the first month of 2011 the weighted average supply dollar price (for all new-build market projects) for 1 sq.m of an elite apartment hardly changed at all and totalled $17,000 ($16,900 per sq.m. in December 2010).
“Two new elite residential projects appeared in the real estate market at the beginning of 2011. In the near future we expect another project to be released: a residential complex under construction, located at Burdenko, estate 11. Thanks to these projects the leading district for quantity of new elite property construction, the Khamovniki, will retain its position,” commented Dmitry Khalin, IntermarkSavills Head of Strategic Consulting and Valuation Department.
Khamovniki area of Moscow