Residential real estate market overview q3 2010

The overview presents the results of the real estate market development in Q3 2010, including residential real estate market of Russia on the whole, residential market of Moscow and Moscow Region, as well as detailed analysis of the elite residential real estate market, which includes the segments of sale and rent of city and countryside residential space.

932,4 thous. sq. m. of residential space were commissioned during 8 months of the current year in Moscow (in July-August - 118 thous. sq.m.). As the result, the plan of residential space commissioning in the capital for 2010 - 3,1 mln. sq. m. - was implemented only by 30% by the end of August 2010.

In Q3 2010 the trend of considerable number of economy-class delivery, which was outlined at the beginning of the year, continued. The increase of the supply volume to the corresponding index of June 2010 amounted to 2%. Delivery of considerable volume of new supply was compensated by completion of sales in some properties, as well as suspension of sale in a number of new buildings due to the introduction of amendments in 214-FL.

In Q3 2010 buyers' activity in the elite residential space market was rather low. During Q3 2010 new elite projects were not announced, new properties were neither delivered. By the results of September the average price for elite new buildings amounted to $ 17, 540 per sq. m. On the whole, the growth of average price for elite new buildings amounted to 0,3% for Q3 2010.  

In Q3 2010 the city elite rental market developed traditionally. The growth of supply volume was noticed in the countryside rental market.

In Q3 2010 two main trends were characteristic of the countryside residential market of Moscow Region. First of all, the formation of differed demand took place, the implementation of which is expected till the end of 2011. Secondly, the growth of prices, which amounted to 1,5% on average in the market, was recorded for the first time since the beginning of the crisis.