Sales of luxury housing in Moscow increased 1.5 times over the year

Sales of luxury housing in Moscow increased 1.5 times over the year
The number of transactions with new buildings in the elite segment in Moscow in 2023 exceeded the figures for 2022 by 54%, as follows from these analytical reports. In just one year, about 1 thousand luxury apartments and apartments were sold in the capital, compared to 650 a year earlier.
The most striking trend was the return of active demand in the luxury housing market, and at the end of the year, transaction activity increased in both the primary and secondary markets, experts note. It is also noted that demand for luxury housing in the early stages of construction has returned.
In 2023, clients from abroad will return to the Russian market. Potential buyers who were interested in purchasing real estate abroad are now returning and purchasing housing in Russia, analysts summarize.
The demand for luxury real estate directly depends on currency fluctuations: the higher the dollar and euro exchange rates, the more active sales of high-budget real estate are. Since ruble supply prices in the segment remained virtually unchanged over the year, and the ruble/dollar exchange rate weakened by one and a half times, the demand for luxury housing in Moscow increased significantly last fall, experts note.
The top projects - sales leaders in the high-budget segment residential real estate market in terms of the number of square meters sold, according to the company's estimates, were three complexes:
Luzhniki Collection;
Life Time.
All three projects are located in the most sought-after, liquid areas of the city—Presnensky and Khamovniki,” experts explain. — Traditionally, buyer interest is associated with these two developing areas. At the end of 2023, the combined share of these two areas in the overall demand structure was 69%.
Average cost of 1 sq. m in the primary luxury housing market in 2023 amounted to 1.5 million rubles. Over the past year, the price has remained virtually unchanged, experts say. As examples of projects where prices showed a noticeable increase in 2023, we can especially note Luzhniki Collection and Life Time.
Along with the activation of buyers, experts cite variability in demand as one of the main trends of last year. Buyers make transactions in a very diverse range of projects with a wide choice both in terms of location and in terms of project concepts.
Analysts also note an increase in investment demand. The main buyers of deluxe housing are end consumers. However, this year investment demand in the segment has increased, as there are fewer alternatives for preserving and increasing capital.
Against the backdrop of high demand in the second half of 2023, the policy of luxury home sellers on discounts has changed. According to analysts, in the first half of the year this was on average 10% of the initial cost of the property. By November, the figure had dropped to 7–8%.

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