The price of Moscow real estate returns in 2011 pre-crisis level

28.12.2010 09:55
Real Estate Market Analysis | The price of Moscow real estate returns in 2011 pre-crisis level Cost of capital property in 2011, will steadily increase and the end of the year could reach crisis level, experts believe, the respondents Vestyami.Ru. In their view, growth in house prices could reach 15%.

Proposal on the capital market of new buildings in 2010 decreased by 15,7%. In December, offered for sale only 273 new objects. The average offer price in December increased by 2.2% to 196.8 thousand rubles per 1 sq. km. m

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However, the number of flats for sale on the secondary market in Moscow increased to 52 thousand, which exceeds the level of the beginning of the year by almost 12%.

In 2010, the market of new Moscow no significant changes occurred, the offer price per month ranged from - 2.6% to + 4%, said general director of ASC Miel Vladislav Lutsk.

"This is due to the slow pace of recovery in the world and Russian economy. Therefore, one should not expect significant changes in price dynamics, at least until the spring of 2011. Development of new buildings in the capital's future will be determined by the direction of economic development. Given the projected slowdown in global economic recovery , the offer price in 2011 could grow by 5-8%, and in case of increase in the rate of growth of Russian economy (as forecast Ministry of Economic Development) - 10-15% ", - believes Lutsk.

In general, progress on the capital real estate market in 2010 can be called positive: for the year prices rose by 5.6% in rubles and 2.3% in U.S. dollars. Note that in 2009, prices declined by 2% and 8% respectively.

In December, the average price for apartments in the houses of business - the class was 189.6 rubles per 1 sq. km. m (1.9%) in the homes of middle-and economy - classes - 121.7 thousand (1.7%) and 107.2 thousand (-2.6%), respectively.

Splash accumulated demand, noted in the first half, followed by a decline in consumer activity in the second half of the year.

In 2010, the business class apartments went up by 10,9%, of which 10.7% occurred in the first half, when the market after the crisis emerged several expensive new buildings. Annual growth of apartment prices average and economy - the classes was insignificant and amounted to 0,16% and 0,85% respectively.

"In the past year there has been a steady increase in demand, especially for new buildings of an economy class. Following the demand, developers have shifted to residential projects in this class. During the year, such facilities were built on sites which were originally scheduled for construction of more expensive properties. In coming year are expected to market a large number of new projects economy - class total area of more than 300 thousand square meters, "- explained CEO Miel - New Maria Litinetskaya.

In the secondary market activity by year-end sales decreased significantly. Number of objects in an open sentence was reduced by 4%, but did not fall below 51.9 thousand apartments that exceeds the level of the beginning of the year by almost 12%.

The average price in rubles in the last month rose 0.7% to 169.2 rubles per 1 sq. km. m. In the U.S. price has not changed - 5.477 thousand dollars per square. Since the beginning of the year the average selling price of apartments has increased by 10,6%, but it is still 12% below pre-crisis indicators.

Over the year more than other more expensive one-bedroom apartments - with 11,6%.

Among the various types of buildings the largest price increase observed for housing in the monolithic houses - 13,6%.

"Summing up, we can say that 2010 was a year of returning to the secondary market of Moscow pent-up demand. It is this factor had a significant impact on the dynamics of supply and the price of the sold facilities. By the end of the year the market is fully settled yet, as evidenced by the restoration of the natural demand . According to our estimates, next year the situation in the real estate market of the capital will not change radically. On average, prices will increase in the limits of 0,5% - 1,0% per month. As a consequence, the end of 2011 the price level back to pre-crisis indicators ", - concluded Lutsk.

By the end of 2010 the share capital newly implemented at the construction stage, increased to 36%, according to the analytical department of company "NDV Real Estate. However, the proportion of new buildings to be sold on pre-sale contract, remains the largest market and accounts for 41%.

Significant distribution in 2010 received the contract for sale of apartments housing co-operative (HBC), in December to share this type of contract accounted for about 15% of new buildings. In addition to the three major contracts, there are other methods of sale (8%), for example, investment contract or bill of exchange schemes. Please note that after making revisions to the Law № 214, the share of newly implemented treaty equity (DDU).

Thus, the highest number of newly preschool scheduled for completion in 2011, while the share of this segment of the market by nearly 68%. Objects that deadline which is scheduled for 2012, representing 18% of the market, 9% are new construction, which has already begun work CC.

Experts "NDV-Real Estate believe that in the I quarter of 2011 the share of new construction, sold for preschool, will reach 40% due to the transfer of some apartment complexes in the form of the contract.

The passing in 2010 showed that the luxury real estate market out of crisis. Rising prices for new buildings and acquisition of long-range problem - the main features of high-end market this year, noted the managing director of real estate agency "farmstead" Natalie Katz.

In the primary market buyers are once again the city became interested in new buildings with a low stage of readiness, which serves as an important indicator of market exit from the crisis, Katz said.
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