Residential real estate market overview 2010

 The monitoring presents the results of the real estate market development in 2010, particularly residential real estate market of Russia on the whole, Moscow and Moscow Region, as well as detailed analysis of the elite residential market, including the segments of city and countryside residential space sale and rent. 

1,37 mln. sq. m. of residential space were delivered in Moscow during January-November 2010. The drop of construction volumes in Moscow constituted 24% versus the analogous period of 2009. The plan of the residential space delivery in Moscow was fulfilled by 45% by the results of 11 months in 2010. 

The supply volume amounted to approx 200 properties in the primary real estate market of Moscow as of the end of 2010. Despite minor change of the summary supply volume in the market, the share of economy-class is gradually growing in the supply structure of the primary market. This index stayed at 20% level as of December 2010. Business-class new buildings still composed the main supply volume in the primary residential market.  

The prices for the primary residential space in Moscow displayed growth in the last months of 2010 and by the results of December 2010, the average price in the Moscow primary market reached $5, 350 (168,5 thous. rubles) per sq. m. The growth for Q4 2010 amounted to 3,3% in dollars and 2,9% in rubles. The growth of the average dollar prices in the primary market reached 11% in rubles and 8% in dollars for 2010 on the whole.

By the end of 2010, the supply volume of the primary elite residential market amounted to 165, 9 thous. sq. m. (940 apartments). The market increased by six new complexes during the year. Buyers' activity in the elite market grew versus the previous year. Average prices for elite residential space of Moscow constituted $17, 500 per sq. m. in the primary market and $24, 200 per sq. m. in the secondary market. The annual growth of prices for the elite residential space amounted to 5-8%.

2010 was stably successful for the elite rental market. Tenants' activity was very high during the whole 2010. By the end of 2010, the average level of rental rate reached the index of $7, 900 per apartment per month, gaining almost 20% versus the indices of 2009.

2010 did not bring significant changes in the total supply structure in the countryside residential market of Moscow Region. The delivery of countryside projects was in progress in the period under consideration, however the economy segment projects and land plots without building contracts, the share of which amounted to approximately 65%, had the leading positions in the total volume of the new supply. The growth of prices in the countryside residential market of Moscow Region was minor and did not exceed 1, 5 % on average.