RESIDENTIAL REAL ESTATE MARKET OVERVIEW Q1 2010

Delivery of residential space in Moscow in Q1 2010 declined. Obviously, this decline was caused by the financial crisis.

The supply volume in the residential real estate market of Moscow remained stable throughout Q1 2010. The main trend was the change of the supply pattern as apartments with the highest liquidity were quickly sold out. Active demand intensified. Still, despite all these highly important positive changes happening in the market, it's too early to speak about a sharp complete recovery of the market.

The beginning of 2010 brought some activity to the elite residential market, and several new properties came into supply. Demand showed positive trends. Prices showed small but confident growth.

The elite rental market either Moscow or countryside was quite active in Q1 2010, as in previous years.

The countryside residential market of Moscow Region didn't see any important changes in the overall supply pattern. The price decline decelerated, but the market saw no prices growth either. Besides, people are more interested now in big adjacent land plots.

The overall supply volume of land plots offered for open sale is still quite high versus the pre-crisis figures.