In January 2014, no new offers appeared in the newly built prime property market. We would still highlight a few projects in the pipeline: the multi-occupancy property Negotsiant and a new suite property at Povarskaya 8. Negotsiant is under construction at Bolshaya Yakimanka 2/4 6. It will include a suite section and a shopping mall and restaurants. The suite property at Povarskaya will be a compact upmarket block in the Arbat neighborhood, with around 130 suites to be put on sale.
By late January 2014, the offer in the newly built prime property market was around 51.6 thousand square meters of apartments (or 200 apartments) and 84.7 thousand square meters of suites (or 190 suites). The total offer was down 3.9% month-on-month.
The share of suites in the prime segment was growing throughout the last year. Suites are now accounting for a half of the offer in the newly built prime property market.
New prime developments are only offered in the Central Administrative District. Accounting for 50% of the total offer in the market, the Khamovniki District is leading the market in terms of the offer size.
In January 2014, the price performance was mainly affected by the rising USD exchange rate. In the newly built prime property segment, prices are mostly denominated in US dollars. Ruble property accounts for no more than 10% of the offer, while the bulk is represented by the suite segment. As a result, the average USD offer price in prime suite developments was down 4.7% month-on-month, with the average price for prime apartments staying flat.
As of late January 2014, apartments in new prime developments cost $23,490 per square meter, while suites cost $22,200 per square meter.