Luxury real estate in Moscow and the region: growing demand for new buildings and countryside real estate

Luxury real estate in Moscow and the region: growing demand for new buildings and countryside real estate
According to preliminary forecasts of analysts, by the end of 2023, about 1,350 transactions may be concluded on the primary market of elite residential real estate in Moscow, which is 57% more than in 2022.
The revival of the segment only began in the second quarter of this year, and a noticeable increase in interest in the purchase of luxury real estate was observed throughout the entire second half of the year, which accounted for the bulk of the demand in 2023 - two thirds of sold apartments and apartments during the period under review.
Luxury real estate continues to be considered one of the most reliable assets. Against this background, the rise in the exchange rate and the desire of buyers to invest their savings in real estate stimulated an increase in demand. It is also further fueled by maintaining discounts and special purchasing conditions in a number of properties, as well as the availability of installment plans.
It is likely that the current pace of sales of successful complexes will continue, and the emergence of new liquid projects in iconic locations in Moscow will also serve as a driver.
The weighted average supply price on the primary market remains relatively stable and in 2023 will amount to 1,575 thousand rubles/sq.m. m. At the same time, developers are beginning to take a more confident approach to project pricing, adjusting the cost of lots and reducing the discounts offered. In general, the dynamics of the weighted average price will remain moderate in the short and medium term.
As for suburban real estate, over the 10 months of 2023, 212 high-budget suburban real estate properties were sold in the Moscow region, while in the entire 2022 only 118 properties were sold, analysts calculated. The total number of transactions on the primary suburban elite market is expected to be 250 lots. New projects were in active demand, half of the transactions were on plots dominating the supply without a contract (105 transactions in 2023 versus 41 in 2022).
The supply volume increased by 36% over the year: according to preliminary estimates, in 2023 about 597 lots will be exhibited on the primary market compared to 439 lots a year earlier.
The primary supply is still dominated by plots without a mandatory construction contract: in total, at the end of 2023, they account for 66% (396 lots) of the total primary supply, cottages and townhouses account for 25% (149 lots) and 9% (52 lots), respectively .
The average area of ​​a cottage offered for sale decreased by 20% over the year, to 620 sq. m. m, in the segment of plots the decrease was only 5%, to 21 acres, but townhouses increased by 34%, to 477 sq. m. m.
In total, since the beginning of the year, four new projects have appeared on the primary suburban elite market, and sales of a new phase have opened in another. In total, over two years, 10 new projects entered the market, and four new projects appeared, as a result, the volume of supply increased by 85%.
Over the year, the average budget for purchasing cottages increased by 12%, to 296 million rubles, including due to the release of a new, more expensive offer, as well as currency fluctuations. The share of the primary supply exhibited in foreign currency at the beginning of November 2023 is 13%. The average price of one hundred square meters increased by 9%, to 3.7 million rubles, the average supply budget for townhouses decreased by 6%, to 64 million rubles.
Comments

No comments yet

Please log in to leave a comment.
Also you can Log in through:
By logging in and registering, you accept the user agreement