New de luxe property market. Moscow. 1H 2014

By the end of 1H 2014, the offer in the newly built prime property market was 127 thousand square meters, including 88 thousand square meters of apartments and 39 thousand square meters of suites (around 515 apartments and 238 suites). The total offer grew 22% month-on-month as a new large property / block planned to be constructed at Bolshaya Polyanka 44 enters the market. The property comprises eight club buildings, each to contain no more than 24 apartments. The construction is slated to be completed for 2016.

In 1H 2014, the offer grew by more than 40% semester-on-semester. Apart from the property on Bolshaya Polyanka, since the start of the year the sales were launched in such prime residences at 4th Kotelnichesky 3, Teatralny dom (Povarskaya 8/1/1), Ostozhenka 12, multi-occupancy property Negotsiant (Bolshaya Yakimanka 2/4, 6).

In 1H 2014, the total new offer is estimated at 54 thousand square meters, which is five times as high in 1H 2013.

As of the end of June 2014, primary sales were run in 22 residential and 11 suite projects.

In 1H 2014, the share of suites in the prime residential property market declined semester-on-semester to around 30% of the total offer as new large residences in the market entered the market. Early in the year the offer was distributed almost evenly.

With its 32% share, Khamovniki still holds the lead in terms of offer in the newly built prime property segment. In the first six months, the new offer considerably pushed up the shares of such districts as Yakimanka (30%), Arbat (17%) and Tagansky (15%).

By the end of June 2014, the average share for apartments in new prime projects came at $23,700 per square meter and that of suites, at $23,850 per square meter. The average figures did not change much month-on-month. Over the first six months, the average offer price in the prime apartment market only grew 1%, while prime suite prices grew 2.5%.

It should be highlighted that such marginal semester-on-semester growth was caused by new projects at early construction stages that entered the market at starting prices (from $9,800 per square meter). Net of the new offer, the average price for prime apartments grew 4.5% semester-on-semester.

Leaders in terms of prices include the Presnensky District (due to the projects in the area of the Patriarshiye Ponds, $29,100 per square meter), followed by Tagansky ($28,500 per square meter) and Khamovniki ($24,400 per square meter).

The Tagansky District joined the top three districts of the Central Administrative District in terms of the price level as a result of the launch of sales in a new residential project whose sales strategy provides for entering the market at the prices of a completed project ($20,000 per square meter for all apartments).

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