Real estate market monitoring. May 2011

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

In May 2011, the growth of the average price for the elite primary market of Moscow, caused by the direct raise of prices for some properties, continued. In the previous month the market hardly enlarged with the new properties, and the supply volume remained practically at the level of the previous month.

In May 2011, potential tenants’ high activity was observed in the office real estate market: several large transactions on the long-term rent were concluded at the same time, two of which – for the areas of more than 10 thous.sq.m. for the location of Russian large companies headquarters.

An important event of May 2011 in the professional retail real estate market was the announcement about the forthcoming redevelopment of “Ramstor” retail group (now operating under “Kapitoly” and “Citystor” brands). A multifunctional complex with the aggregate area of 235 thous.sq.m. with the retail component of 59 thous.sq.m. is planned for construction instead of the retail center measuring 19.5 thous.sq.m. The developer of the project is Enka company.

A landmark event of the Moscow hotel market in May of the current year was the sale of the Ritz-Carlton Moscow hotel in Tverskaya street, in the immediate vicinity of the Red Square. The transaction took place against the background of the total slack and the hotel market main players’ activity decrease. An important event of the regional market was the signing of the agreement for the new 5* hotel management in Sochi between “Systema-Gals” development company and Swissotel Hotels&Resorts international hotel operator.