Real estate market monitoring, June 2013

The monitoring highlights the development results of residential and commercial property markets in Moscow and in the Moscow Region in June 2013.

New supply did not enter the elite market of flats and apartments during June 2013. 43 residential, 16 apartment complexes and one complex, combining both formats of real estate (Wine House), were presented in the market. No considerable correction of prices was observed in the market of elite flats and apartments by the results of the month. By the results of June 2013 the average supply price amounted to $19, 550 per sq.m in the primary elite residential market and to $23, 900 in the secondary one, The average price in the market of elite apartments equaled $15, 350 per sq.m.

Tenants’ and buyers’ low activity was preserved in the office property market of Moscow in June 2013 due to traditional summer slack of business activity. The aggregate volume of office lease transactions did not surpass 10 thous. sq.m. It was reported in June about the fact that the Moscow Region Government succeeded in legalizing its rights to BC Dva Kapitana with the total area of 96 thous. sq.m located in Myakininskaya bottom land near the House of Regional Government. In addition to it the information about the Urban Planning and Land Commission’s approval of area planning project of a multifunctional common area No2 of Dmitrovsky district, NAD, appeared in the market. 

The opening of three professional shopping centers with the aggregate area of more than 270, 000 sq.m took place in the Moscow Region in June. Thus, the 1st stage of Fashion House outlet center located on the highway M-10 near the Sheremetievo airport was opened. Two other properties opened in June were traditional full format shopping centers. Thus, a technical opening of RIO shopping and entertainment center took place in Leninsky Prospekt. The largest opened property was Iyun shopping center of Regioni company in Mitischi (the aggregate area – 178, 000 sq.m, the rentable area – 75, 000 sq.m). The rental rates in the street retail segment did not face any tangible changes in June due to the summer decline of business activity. The amount of vacant areas is preserved at the minimal level of 1-3%.  

In June Russian designer Denis Simachev announced a project of a club boutique hotel in Krasnaya Polyana in Sochi. Reportedly, the property will include apartments and villas, which will be put into operation by the Olympic Games-2014 and sold after their ending. In June the supply increase of hotels under international operators’ management amounted to 157 rooms in regional cities due to the opening of the Ramada Kazan City Center in Kazan. Moreover, a planned construction of a hotel under Park Inn by Radisson brand for 135 rooms was announced in Nizhny Tagil. It should be noted that the property of Carlson Rezidor Hotel Group will become the first international hotel in the city market.  

The introduction of new settlements to the countryside market continued in June 2013. Economy class project, offering for sale blocked houses, as well as land plots without compulsory building contracts still account for the largest share of new supply. In June 2013 the average level of price for countryside properties in the Moscow Region was preserved at the same level with minor fluctuations towards decrease or increase depending on the project’s quality and readiness stage. The price level of supply in newly delivered settlements did not increase, the economy class continued to prevail in the supply.