“New” Moscow is to be autonomous area off the capital

Moscow authorities are to turn new Moscow territories into independent area characterized by the features of European satellite towns. Despite for the time being only 10% of new buildings are low-rise objects in future the area is mainly designed for low-rise housing estate.

According to Est-a-Tet at present ten large-scale multistory projects are launched with total area ranging from 200 thousand to 1.3 million square meters of real estate. “Most likely such major projects of mass realty will no take place on this land lot.

“New Moscow” will be developing chiefly on the ground of low-rise projects”, - explains the head of Est-a-Tet Company Analytical Centre Head. At this Moscow chief architecture Sergey Kuznetsov reports that new district is designed not as a one of the numerous dormitory districts but as independent administrative foundation. The main goal will be creating of a district with well-developed infrastructure and workplaces.

Thus in “new” Moscow the problems of “old” Moscow are to be solved. Economy class segment will be saturated by new offers and it will result in the demand shift from Moscow region to “new” Moscow. Thereby the price correction in economy class segment will take place in “old” Moscow.

According to Est-a-Tet Company nowadays about 40% of realty demand in economy segment goes to Moscow region and “new” Moscow, 40% - to secondary market, 5-10% - to out-of-town market and only 10-15% of customers acquire economy class real estate in the very Moscow.

At this prices for flats in new districts are not to increase considerably because of severe competition and will make up not more than 10-12% per year.

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