Real estate market monitoring. August 2011

The monitoring highlights the results of the residential and commercial real estate markets development in Moscow and Moscow Region in August 2011.

For the past month the supply volume in the elite primary market of Moscow decreased by 3.4%. The market did not increase by new properties, at the same time the conclusion of deals on sale of flats/apartments in the existing elite complexes continued. By the results of the month the average price in the primary and secondary elite flats market dropped 0.7-0.8% due to the currency rate fluctuations, as well as due to the change of the supply structure.

The increase of deals and potential tenants’ and buyers’ high activity remain the relevant trends of summer month in the office real estate market of Moscow. In August 2011, one of the largest lease transactions of the year was concluded: Kaspersky Lab rented almost 30 thous. sq.m. for the location of its headquarters in the “Olympia Park” complex.  

The landmark event of August in the retail real estate market was the opening of a professional retail-entertaining center “MEGA” in Ufa. The developer of the project was Ikea MOS company. The aggregate area of the REC amounted to 130, 000 sq.m.

The opening of the Vega Hotel and Convention Center in one of the building (Vega building) of the Izmaylovsky hotel complex was an important event of August in the hotel market of Moscow. The 3* hotel with a room stock of about 1, 000 rooms entered the Best Western chain, becoming the first hotel of the chain in Russia.

The countryside real estate market remained active during the last month of 2011: the delivery of new settlements continued – the market enlarged with two new projects.