Managing Director of the Department of Residential Property at Blackwood Timur Saifutdinov said in an interview about the situation in the suburban housing market.
- Obviously, not hot summer boosted demand for suburban real estate, is this true?
- Naturally, the weather conditions the summer of 2010 affected the market for suburban residential suburbs.
Unusual for the Moscow region the hot weather in recent years, virtually paralyzed the activity on the country market. Demand for suburban homeownership declined significantly due to the fact that many potential buyers of real estate a high budget left the Moscow region for the long term, replacing the current weather conditions for a more comfortable climate. Buyers are also remaining in Moscow, go to the views were not ready.
- What are the dynamics of demand for big-suburban real estate near Moscow?
Dynamics of demand for big-suburban real estate near Moscow as a percentage of the total number of applications for home ownership and land (January 2009 - 100%)
Graph above reflects the monthly evolution of the number of applications to buy homes and land, enter the company Blackwood. Indeed, this summer you can see a serious decline in demand (the number of applications relative to the summer months of 2009 declined by an average of 50%), which is caused by a seasonal decline in business activity in the market, and abnormal weather conditions.
- Can we say that the fall will activate the market? How can we assess the prospects for primary and secondary markets?
- Due to the prevailing weather conditions, as well as the seasonal slowdown for the suburban market activity is caused by the formation of pent-up demand in the market-town residential suburbs.
At the same time this summer, the amount of pent-up demand is likely to be even higher than last year. Its implementation is projected in the autumn of 2010. After normalization of weather conditions return to potential buyers inevitably, the number of hits, and accordingly, and deals will grow. After a recovery in demand most popular among the potential buyers will continue to use the objects in the final stages of construction.
In this case, if we talk about the geography of demand, the significant reduction in requests for objects in the eastern areas (primarily in the economy segment) will be felt for some time. It is likely the reorientation of demand in the western direction, but on a much larger deletion. In this case, we estimate that the return of buyers to the east will still happen, because the price not very popular attraction of the eastern and southern directions somehow compensates for the potential environmental risks.
- If we assume that the pent-up demand will be implemented in September or October whether to expect a price increase?
- As for the rise in suburban real estate market of Moscow region, then wait until the end of 2010 the positive dynamics is possible only in terms of liquidity facilities to a high stage of readiness, which is likely to be at the level of 5-15%. It is worth noting that the traditional increase in activity at the suburban real estate market and developers are prepared, many of which have already announced the planned fall 2010 price increases and termination of the summer discounts and bonus programs.