Tendency on posh realty Moscow market: rental rates increase, sale rates decrease

According to Knight Frank Company researches dedicated to elite segment rental rates the prices increased by 5.5% during the last year. Supply decrease considered to be one of possible grounds for price rise.

For instance price rates dynamics showed in May the supply decrease by 18%, the decrease noted from the beginning of 2013 year made up 13.6%. Experts expect price decrease this summer as the market is to be enriched by seasonal offers along with considerable amount of new investment apartments.

The researches in demand domain shows 4.7% decrease. Thus on May, 2013 demand mostly achieved the supply level. The highest demand and supply activity was registered in price bracket 1.000-3.000 US dollars making 60% from the total bulk of deals. Traditionally 1 and 2-room flats were of the greatest demand.

Elite rentals were offered mostly in Central Administrative Area of Moscow – 25.6% and in Western Administrative Area – 20.4%. Average rental rate for today makes up 6.400 US dollars per month. This index is 5.5% higher then the one of the last spring. As for the average price for premium real estate sale and buy the analysts registered price decrease by 8% comparing with indexes of spring 2013.

The most considerable price decrease was noted in Chisty Prudy area – 20.3% (one square meter costs here 23.100 US dollars) and in Patriarchy Ponds area (one square meter costs here 28.900 US dollars). The primary market shows stable price rise in amount of 1% during the last year without sudden changes.

The supply realm was filled mostly by the properties priced from 4 to 6 million US dollars. The most popular were the areas of Tverskaya and Khamovniki.

Apartments demand in these areas increased by 21% comparing with spring 2012. Owing to the higher demand elite flats in Tverskaya rose in price by 14.5% (one square meter of property in Tverskaya costs 18.9 US dollars), in Arbat area by 13.2% (square meter costs here 24.9 thousand US dollars).

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