According to the Federal State Statistics Service, 5.94 mln. sq.m. of residential space were commissioned for January-February 2012 in Russia. All in all, 67 mln.sq.m. are planned for commissioning in 2012. The maximum volumes for the first two months of 2012 were commissioned in the Krasnodar Kray, Tatarstan republic followed and the Tumen Region took the third place.
By the results of January-February 2012, 117.5 thous.sq.m. were commissioned in Moscow. In general, 2.5 mln. sq.m. are planned for commissioning in the city in 2012.
During Q1 2012 the primary market, which had been enlarged mainly by economy and comfort class properties during the previous periods, began to be actively enlarged by business class properties.
On the whole, by the results of Q1 2012, the supply volume in the primary market amounted to 213 properties, the summary area of apartments in the supply – approx 0.9 mln.sq.m. with account of apartments and elite new buildings.
In Q1 2012, the trend of buyers’ activity growth was preserved, at the same time the paces of the growth of the number of concluded deals fall behind the indices noted in the period of overcoming the crisis, which is indicative of the market’s going through the main stage of recovery. According to the Federal State Statistics Service Administration, 19724 transactions with residential real estate were concluded in Q1 2012, which is 8.7% higher than the indices of 2011, for comparison this index amounted to 66% in 2010, to 21% in 2011. The growth, as in 2011, took place due to the development of mortgage lending: the increase of transactions with mortgage turned out to be more considerable than the total increase of a number of deals.
The average supply price in the primary market was established at the level of 192, 850 rub. per sq.m. in Q1 2012. The dollar equivalent reached $6, 560 per sq.m. By the results of Q1 2012 the growth of the average price in rubles by 6% was recorded. The change of the dollar price by +14% was conditioned by the weakening of the dollar rate against ruble (the decline of the dollar rate against ruble constituted -7.5% in Q1). The average level of prices in the secondary residential market amounted to 191, 500 rub. per sq.m. ($6, 500 per sq.m.), the increase for Q1 2012 amounted to 2% in rubles and to 10% in dollars.
During Q1 2012 the primary apartments market increased by five new properties. Approximately 142.6 thous. sq.m. in 21 complexes were offered in the primary market by the end of March 2012. The average dollar price in the primary apartments market increased by 7.4% by the results of Q1 2012 and reached $9, 930 per sq.m. The average ruble price remained at the previous level – 292, 000 rub. per sq.m.
By the end of Q1 2012 the supply volume in the elite primary market constituted 830 flats in 36 complexes (about 155 thous. sq.m.) exclusive of apartments in Moscow. By the results of Q1 the supply volume in sq.m. gained 4% in the primary elite market. Elite residential space buyers’ activity stayed at the high level in Q1 2012. About 125 apartments were sold in the primary elite market for Q1 2012, which is 23% higher than the analogous period of 2011. By the end of Q1 2012 the average dollar price increased both in the primary and in the secondary market of elite residential space. The average price constituted $19, 200 per sq.m. in the primary market (the growth for the quarter posted +1.1%), and to $24, 400 per sq.m. in the secondary one (the growth for the quarter posted +3.2%).
The elite rental market was actively enlarged by new properties in Q1 2012, the growth of demand was recorded as well – it was mainly conditioned by the “seasonal” factor. During the whole past period a gradual growth of the average level of rental rate was observed. It reached the index of $8, 600 per apartment per month by the end of Q1 2012. The growth for the quarter posted 2.4%.
The growth of the market was noted in the countryside elite residential segment – the beginning of the year is traditionally the beginning of the “season” – the period of tenants’ active search of cottages both for permanent and for temporary (summer) residence. The average level of rental rate reached $17, 200 per house per month by the end of Q1 2012. The growth per quarter amounted to 7%.
Upon the appearance of considerable volume of new offers (11% of the total number) in the primary market of the Moscow Region the number of properties, which offer apartments for sale, exceeded the index of 1000 houses and amounted to 1 064 new buildings. New offers, as a rule, are represented by the properties of complex development of territories.
The development of the low-rise construction segment is gaining force in the Moscow Region with the preservation of high construction activity. New low-rise residential complexes appear in the market regularly, which causes the increase of a number of offers in this segment – up to 35% of the total number of properties for Q1 2012.
Buyers’ activity remains high in the Moscow Region, mainly, concerning the offers of the first belt of distance (up to 15km from MKAD), including the ones within the territory of New Moscow. It was reflected in the price dynamics of new buildings in the near Moscow Region, which was positive. On the whole, the supply prices gained 4% on average in rubles in the Moscow Region, reaching the level of 69, 500 rub. per sq.m., and the decline at the level of 3% was recorded against the strengthening of the national currency against U.S. dollar ($2 039 per sq.m.)
The development of the countryside residential market in Q1 2012 took place according to the established earlier trends: the economy class projects still prevail in the supply, the share of settlements with land plots without building contracts remains considerable. Nevertheless, in the first decade of 2012, the market saw projects of higher quality. The most interesting projects, which appeared for the past period: high-budget settlements Fortops in the Kaluzhskoe highway (from the developer of “Olympic village Novogorsk”, “Khimki Group”), Berestovo Club in the Novorizhskoe highway (cottages in the forest land plots), Park Avenue in the Novorizhskoe highway (townhouses, Villagio Estate); the project of the complex development of the territory “Countryside quarter” (111 ha, developers are RDI Group and Limitless), the project “Pestovo LIfe” (OPIN company, which plans active development of Dmitrovskoe direction and delivery of some new projects), etc.
There were no serious shifts in the price situation in the countryside residential real estate market for Q1 2012. The oscillatory dynamics is still observed in some projects: the average price level is gradually growing in the most sought-after settlements, and the prices decline is observed in the less successful projects, including the complete ones (more often within the framework of special promotion actions and programs). At the end of Q1 2012, the average supply prices in the countryside residential real estate market turned out to be the following: the price of 1 sq.m. of a cottage (including the price of land) amounted to $5, 050 in elite settlements, to $3, 350 in the business class settlements, to $1, 550 in the economy segment settlements. The price situation in the segment of settlements without building contracts remained stable as well in Q1 2012, no tangible growth of prices was observed.
Traditionally, Novorizhskoe and Rublevo-Uspenskoe directions hold the leading positions in the demand for high-budget countryside real estate: by the results of Q1 2012, 38% and 30% of requests respectively were for these directions. Cottages measuring 300-400 and 400-500 sq.m. on the land plots of 15-20 and 21-30 sotkas were of the highest demand, at the same time the highest demand by budget of a purchase by the results of Q1 2012 was concentrated in the segment of up to 1 mln.dollars.