Real estate market monitoring. November 2011

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

During the last month the primary elite residential market of Moscow increased by apartments in “Knightsbridge Private Park” RC, “Andreevskiy” RC (last 5 apartments from the developer), as well as apartments in a new club residence “26, Tsvetnoy”. The average dollar prices in the elite residential market of Moscow remained practically at the level of last month.

In November 2011, the office real estate market was characterized by the decrease of the number of lease deals. One of large transactions was “MMC” GC rent of 2 thous.sq.m. in Riverside Tower BC. At the same time, several large transactions took place in the sale and purchase segment. The total volume of implemented areas in November 2011 exceeded 110 thous. sq.m. A landmark event was AEON Corporation company sale of two large properties: “Nagatinskiy” BC (70 thous.sq.m.), acquired by “Marins Group” and “Nemetskaya Sloboda” BC (20 thous.sq.m.), acquired by “Svyaz-bank”. Tenants’ and buyers’ activity will most likely remain rather high till the end of the year: thus, O1 Properties company acquisition of “Lesnaya Plaza” BC (49 thous.sq.m.), and the conclusion of deal of Mail.ru Group lease of 30 thous.sq.m. in SkyLight BC. The latter will become the largest lease deal in 2011.

In November, a traditional for the end of the year buoyancy of the main players’ business activity was observed in both Moscow and the Moscow Region markets. In November, the opening of three hotels took place in regional cities, two of them operate under international operators’ management. Besides, in November, several new projects were announced both in Moscow and in regional cities.

November was characterized by developers’ high activity in regional cities: as the end of the year and the period of the New Year sales are coming closer, developers strive for delivering properties at the final readiness stage to the market. Thus, in November three professional retail-entertainment centers were opened in Orenburg, Ryazan and Chelyabinsk. 

Besides, in November, a new project of professional retail center was announced in Moscow. A REC measuring about 230, 000 sq.m. is planned for construction at the place of “Emeral” market at MKAD.

In the countryside residential real estate market despite the predominance of land plots without compulsory building contracts in the new supply, which has been observed during the last three years, a gradual recovery of more high-quality segment is taking place. Thus, in November 2011 the sales were opened in the elite cottage settlement Sovereign, which is located within 18km from MKAD along the Novorizhskoe highway. The settlement designed for 79 households presents cottages measuring from 237 to 1, 000 sq.m. on the land plots of 22-52 sotkas for sale.