Real estate market monitoring. February 2012

The monitoring presents the results of development of the residential and commercial real estate markets ofMoscowand the Moscow Region in February 2012.

In February 2012, the elite residential market increased by new supply in Literator RC, White Tower of Barkli Park RC and in the house at 13, Tsvetnoy boulevard. By the results of the month the supply volume in the primary elite residential market increased by 15.6%. Buyers’ activity declined at the beginning of 2012 versus the last months of 2011, and, however, stays at the level of analogous period of last year.

The office real estate market players’ low activity was still observed in February 2012, the volume of lease deals (see the Spreadsheet below) decreased by 20% versus January. The aggregate volume of office premises rented in February amounted to approx 16 thous.sq.m. No office center was put into operation in February. Besides, authorities prohibited WWF to demolish a building in the center of the city with the subsequent construction of a “Panda-home” eco-office (1.2 thous.sqm.). Positive events of the month include the appearance of several new projects.   

No significant hotel property was opened inMoscowand regional cities in February, however, the market players continue to announce plans on the implementation of new projects, particularly two hotel projects are announced in the center ofMoscow. A chain of luxe class boutique hotels Oetker Collection, which manages hotels inFranceandGermany, announced its intention to enter the markets ofMoscowand St.-Petersburg.

In February, a landmark event in theMoscowprofessional retail market was the opening of a retail gallery in the structure of the “Moskva” hotel, the large tenant of which was Podium Market department store. A regional market of professional retail real estate enlarged at the expense of the opening of three retail entertainment centers in Samara,UfaandVolgograd.

In February 2012, the countryside residential real estate market players’ activity increased: the sales were opened in four cottage settlements for this period.

There are still no tangible shifts in the supply prices in the countryside residential real estate market: the average level of prices remains stable, at the same time the deficit of supply in the most liquid niches predetermines the growth of prices in the most liquid and in-demand projects, first of all, at the final construction stage.