Elite Residence Russia grown up in price

21.01.2011 15:40
Real Estate Market Analysis | Elite Residence Russia grown up in price 2010 was a success for the sector of real estate in both urban and suburban segments

Financial performance and economic processes of the past in 2010 gave hope to the real estate market participants that a return to pre-crisis situation will not happen. Brokers, summarize, report of a serious increase in purchasing activity and the growth of transactions in 2010 on the residential and commercial real estate. Specialists at Knight Frank, assess the situation on the capital market and the country gentrification, came to the conclusion that this sector over the past year a little older and will grow further.

Related article: Primary housing in the 40-70 km from Moscow, became the most expensive in the area

Director, Department of elite real estate Knight Frank Elena Yurgeneva said that in 2010 the most dynamically developing market of the elite of the primary urban real estate. "In this market began to appear more and more new projects, the most interesting proposals went in just a few days," - said the expert.

E. Yurgeneva filed by the end of the volume of the primary market elitki in Moscow amounted to almost $ 3.5 billion increase in average prices for primary market of elite housing in Moscow reached 7.6% in U.S. dollars and rubles in 11,2%. "At the same time in separate facilities increase was much higher - said the expert. - For example, the year the average price in the complex "Italian Quarter" has risen by 44%. "

Experts believe that the past year was a year of market recovery, and now nothing prevents him from moving forward. "We look positively in 2011, which will be a year of development, the transition to a qualitatively new level, new interesting projects and ideas" - an optimistic interpretation E. Yurgeneva.

In general, according to its figures, in December 2010 the market was pretty quiet, average prices for primary market of elite housing in Moscow for the month amounted to 0,1%. In the secondary market recorded a slight increase in the average price of 0,07%. The rental market average rates continued to decline over December 2010 correction was 0.94% compared to November 2010

Secondary market, according to E. Yurgeneva, over the past year, behaved more actively than the primary. During the first quarter on the secondary market, a large number of expensive proposals. This was due to the return of many owners who believe that the market has recovered, says an expert.

Increase in the number of expensive apartments, influenced the average prices and the resulting increase in I quarter 2010 amounted to 9,1%. However, from April 2010 is not supported by demand prices began to smooth and protracted decline. In December 2010, the trend for the correction is over. Over the past month, average prices rose by 0.07%, thus, the annual increase in prices in the secondary market amounted to 1,3%.

An important event in 2010, according to E. Yurgeneva, was amending the law on joint construction "(214-FZ). From June 26, according to these amendments deal with housing, accompanied by the involvement of citizens and the emergence of future property rights shall only be made under the law on joint construction. In November, a number of companies were fined for non-law sees a specialist.

In her view, an important event for the market was changing and the mayor of Moscow. "The appointment of a new governor has resulted in a change of command, which is probably not over yet, and in 2011 we expect the new appointments," - said the expert.

"In December zammera for Construction and head of the department of urban planning policy in Moscow Marat Hasnullin stated that the construction of buildings in Moscow should be on standard projects with only a change in architectural design. Adoption of such a law actually put a cross in the primary market of elite housing and housing business class ", - said the expert.

She notes and recovery of the mortgage market last year. In the business class, according to market participants, the proportion of transactions involving mortgages in 2011 could reach 30%.

According to HMLA the end of 2010 the volume of mortgage loans increased by 2,1-2,4 times in comparison with 2009 At the end of the year, many banks have announced special mortgage programs and the proportion of transactions involving loans has increased markedly.

Meanwhile, states E. Yurgeneva on the market of elite housing mortgage apply no more than 5% of transactions, but the tendency to increase this percentage as observed. Often missing in the apartment to take the amount of loan is cheaper than withdraw funds out of business or investment, she said.

Head of suburban real estate Andrey Solovyev Knight Frank is sure that a return to pre-crisis situation will not happen, but "buyer's market" will continue in 2011 "This means that competition will increase, both among consulting companies, and among sellers of real estate, - he says.

Soloviev also notes that in 2010, market activity has increased significantly. "Developers deduce previously deferred settlements on the market" - he explains.

The specialist points out that the whole volume of new supply in 2010 remained at a fairly high level, but the structure has changed: before the crisis, the share of business and elite segment was comparable to economy class, now the main entry is economy class and towns, offering plots without a contract. However, in the second half of 2010 the share of settlements from areas without a contract started to decline.

The expert notes that, compared with the previous year the share of the business segment has grown 6.5 times, and for the first two years, entered the market town of class A. In total, according to him, in 2010 at suburban real estate market turned out 43 new settlement.

Last year, he said, there was an increase requests with requests to buy the elite suburban estate near Moscow: In December 2010 the number of requests has increased 5 times compared to the same period last year. At the end of the year, many retailers offer discounts, which led to an increase in the number of transactions.

In 2010, after stagnation in the previous year, prices grew for the first three quarters. In the IV quarter. In 2010 the average price remained at the previous quarter, sales do not increase the cost to implement the maximum volume in the New Year period. The level of average prices throughout the year grew steadily, and the year the average price rose by 9%.

Among the main trends of the past year, experts have called a gradual increase in prices in the market-town real estate. However, this has touched a high-quality proposals, he said.

Among other trends Soloviev indicated by the fact that the developers went back to the realization of previously deferred projects of the elite class. Also on the market is gradually return of foreign investors.

The main volume of the new proposals made objects-Cheap and towns, offering plots without a contract. On the fence increased availability of mortgage lending. A growing number of cottage settlements have contracts with banks to provide mortgages to buyers. In the primary market deficit of high-quality prefabricated houses completed in the villages or towns close to completion. The volume of secondary supply is growing: sales derive items for sale, feeling confident in the market.

In general, suburban real estate market can be characterized as a buyer's market: The proposal significantly exceeds demand, and prices have not yet lasted up to pre-crisis indicates Soloviev.

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