Real estate market monitoring_August 2010

Supply volume in the Moscow elite primary market in August 2010 amounted to approximately 147,9 thous. sq. m. in 29 residential complexes. The largest supply volume (more than 80%) could be observed in such districts as Khamovniki, Tverskoy, Presnensky and Zamoskvorechie. The market experiences supply volume reduction as before: the most liquid offers leave the market gradually, some new buildings are temporally off sales as before, new properties do not enter the market.

August 2010 showed some signs of recovery in the office real estate market after the traditional summer lull: several deals on premises lease were concluded (see the Spreadsheet below), the office purchase market preserved a rather high activity - another large transaction was reported in August, which was concluded between Centurion Group developer and "Evraz group" metallurgical holding.

The most striking event in the professional retail real estate market in August was the opening of "Kluchevoy" retail center in Borisovskie prudi str., as well as the news about the forthcoming delivery of Wendy's fast food chain of restaurants in Russia.

In August the hotel market of Moscow increased by 170 rooms due to the SK Royal hotel opening. August in regional cities was characterized with high activity of international hotel operators.

In August 2010 the countryside residential market of Moscow Region experienced stagnation and demand decrease. Unusual for Moscow Region hot weather, set in August, as well as smog, which covered Moscow and Moscow Region, practically paralyzed activity in the countryside market.

However new countryside settlements continue to enter the countryside residential market of Moscow Region. The leader by the number of delivered settlements was Kaskad Family company, which began the implementation of the following projects: "Zikovsky Uezd" at 78 km of Novorizhskoe direction, "Dolmatovo" at 28 km of Kashirskoe direction and "Velyaminovsky Uezd" at 48 km of Kashirskoe direction.