Real estate market monitoring. October 2011

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

In the last month the aggregate supply volume in the elite primary market of Moscow grew by 17% due to the delivery of a new complex with apartments “Mercury City”. The market did not enlarge with new residential complexes. As far as the announced projects are concerned, it was reported in October about Dekra Company plans on the construction of a multifunctional complex with a hotel and apartments in Presnenskiy district of CAD. The average dollar prices in the elite residential market of Moscow remained practically at the level of last month. 

Tenants’ and buyers’ activity in the office real estate market remained rather high during the whole period since the beginning of 2011. In October, several large transactions were concluded. Thus, Unicredit Bank acquired approx 12, 000 sq.m. of areas in Nagatino i-Land technopark. An investment contract on the sale of another 4, 000 thous.sq.m. at the second stage of “9 acres” business center in the south-west of Moscow was concluded. The property is at the stage of construction and is to be finished at the end of 2012. Several large deals on the sale of high-quality premises are expected to be closed.

In October, the delivery of two new hotel brands to the Russian market was announced: the “Pekin” hotel in Moscow will pass under the management of Fairmont Hotels&Resorts, the hotel of the Indigo Hotels chain is planned for delivery in St.-Petersburg in 2012.

It was also announced in October about a new large project of a retail-entertainment center in Moscow: the property measuring 300, 000 sq.m. may appear within the territory of the All-Russian exhibition center. Entrepreneurs Z.Iliev and G.Nisanov’s structures will act as the developer of the project. Besides, in October, Trinity Development Group company stated its intention to invest in the construction of retail-parks in Russia. The first four projects measuring 168, 000 sq.m. will be implemented, presumably, within the land plots near MKAD.   

In October 2011, developers’ activity in the countryside residential real estate market was traditionally a little bit lower than in the spring-summer period: for the past period the sales were opened only in one cottage settlement – “Losiniy Park 2”, an economy class project, implemented within the framework of the complex development of lands between the Yaroslavskoe and the Schelkovskoe highways. “Losiniy Park 2” settlement is located on 16km of the Yaroslavskoe highway and is designed for 621 land plots without building contracts measuring from 5.4 to 21.5 sotkas.

A landmark event for the countryside residential real estate market in October 2011 was VTB bank announcement about the concept of development of about 1, 000 ha in the area of the Rublevo-Uspenskoe highway.