Real estate market monitoring. September 2011

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

The elite primary market of Moscow did not see any new properties during the past month. However, it was reported about the forthcoming construction of MFC with apartments on the Sofiyskaya embankment, as well as near the “Beijing” hotel. The trend of buyers’ activity growth, which was observed in August, was preserved under the influence of unstable situation in the financial markets, as well traditional autumn recovery. The ruble exchange rate fluctuations had the main influence on the average dollar price level decline in the elite segment.

The main trends settled in the office real estate market of Moscow Region in 2011, remained relevant: in the first autumn month the market was traditionally active, several large lease transactions were concluded, a number of investment sales was expected.

On the whole, the general background of the high-quality office real estate of Moscow Region remains positive, and, we expect that 2011 will be rather successful, first of all, by the volume of concluded deals. Nevertheless, the possibility of the business activity decline in the last decade of 2011 is preserved due to the growing risks and ambiguity in the world economy.

In September, two professional retail centers were opened in regional cities. Thus, the opening of “Ligov” REC took place in St.-Petersburg. The total area of the property amounted to 35, 700 sq.m., “Prizma” supermarket and “KARO Film” cinema are the anchor tenants.

During September, the opening of two hotels under international operators’ management took place: Ibis (3*, 177 rooms) was opened in Yaroslavl, the official opening of the Kempinsky Grand Hotel Gelendzhik (5*, 379 rooms) was held in Gelendzhik. In both cities the hotels became the first properties under international operators’ management. However, in Yaroslavl the competition among the accommodation means will increase considerably in the nearest years: such projects as Hilton Garden Inn (the opening is planned for 2012) and Park Inn (2013) are announced in the city. With regards to the dimensions of the city, it may be forecasted that after the launching of these properties, the middle segment of the hotel market in Yaroslavl will be close to saturation.  

September 2011 turned out to be rather active for the countryside residential real estate market of Moscow Region: the active delivery of new settlements continued, approx 10 new properties appeared in the market for the past period.

Despite the fact that land plots without compulsory building contracts still prevail in the newly delivered projects, a gradual recovery of the market still takes place: thus, in September the sales of ready households and land plots with building contracts were launched in two high-budget settlements: in the Novorizhskoe highway the sales started in the “Rubin Estate” settlement, located within 15km from Moscow (26 households from 380 to 740 sq.m. on the land plots measuring from 13 to 22 sotkas); in the Ilinskoe highway the sales started in the third stage of the cottage settlement “Europe”, located within 23 km from MKAD. 

Two new settlements with land plots without compulsory building contracts appeared on the territory of “New Moscow”: the settlement “Alexandrovskie prudi” by Absolute Management Company, located within the 30 km distance from MKAD between the Varshavskoe and the Starokaluzhskoe highways, which will occupy approx 100 ha and will become the largest countryside project of the company, and the settlement “Malinovka-park”, measuring 5 ha, located within 25 km from MKAD between the Kievskoe and the Kaluzhskoe highways.