The mowing tendency forming rental rates on Moscow premium class realty market mostly depends on US dollar and Euro exchange rates.
Majority of luxury Moscow real estate landlords prefer to fix rental rates in pre-crises equivalent in US dollars.
Despite market participants don’t declare openly about the new wave of crises Landmark Real Estate agency experts point to the obvious elite realty market demand recession. Demand increase being traditional for September hasn’t been recorded in September 2014.
There are very few clients with high budgets on the premium class real estate market. Moreover there’re very few of employees-foreigners which are the main consumers of premium realty. The budgets assigned for foreign employees are cut down considerably, and, evidently, the number of employees is curtailed as well.
Stock market forecasts warn that US dollar exchange rate decrease is not far off. That is why not less than 1/3 of premium class Moscow realty owners prefer to fix rental rates in ruble equivalent. Having fixed a pretty penny amount in rubles today the owners guarantee a long tern income in home currency not running risks at the exchange rate slump prospective in the start of 2015.
However regardless the stock markets forecasts most of owners possessing properties in Moscow centre are looking forward to the foreign newcomers’ afflux habitual to the autumn start and therefore they are keeping the prices at the pre-crises level in US dollars or Euro.
We should also mention that some foreign employees having resided Moscow more than during one year hope to find alternative premises to the ones they are renting now expecting the afflux of cheaper and more qualitative properties. They are aware of the cutback tendencies in business affairs with the US and other western countries and believe it can be the ground for market saturation with new profitable offers. But actually only the landlords who receive the main bulk of income from realty business display price flexibility.
Landmark Real Estate Agency
Tel.: +7 (495) 792-5949 email@example.com
Zhanna Avdeeva Head of Sales Department, Landmark Real Estate Agency