The monitoring sums up the results of development of the residential and commercial property markets in Moscow and in the Moscow Region in May 2013.
During May 2013 the elite residential market increased by new supply in the residential complex “Sadovie Kvartali” and in the elite quarter “Wine House”, where the sales of flats started. The segment of apartments enlarged by another new project of Hals-Development Company – “Sadi Pekina”. By the results of the month the supply volume in the elite primary residential market was 20.4% up and reached 1, 200 flats and 830 apartments. By the results of May 2013 the average prices did not undergo any considerable changes in the secondary market of elite flats and in the primary market of elite apartments. The average price in the primary market of elite flats declined by 2.5% due to the change of the supply structure (introduction of flats at the initial stage of construction in “Wine House” at the price of $10, 200 per sq.m). The average supply price constituted $19, 500 per sq.m (-2.5%) in the primary elite residential market and $24, 200 per sq.m (+0.4%) in the secondary residential market. The average price in the market of elite apartments equaled $15, 530 per sq.m (+0.2%).
The office market players’ low activity was observed in May 2013, the aggregate volume of lease transactions did not surpass 10 thous. sq.m. The information about the construction of two new multifunctional complexes appeared in May 2013: the building company OJSC Victory announced the construction of the building complex “City Park” near Stremilovskoe village of Chekhov region. The total area of the complex will reach 293 thous. sq.m on the land plot of 45 ha. Other news included the initiative of Sokol Estate company to invest $150 mln. in the construction of a business center, measuring 45.5 thous. sq.m, at 72, Leningradsky prosp., bld.4.
In addition to it, the state authorities set the volume of commercial real estate, which may appear near the Small Ring of Moscow railway line (after the launch of speeding trains). Thus, a large office center with the total area of 107 thous. sq.m will be built at Yaroslavskaya metro station. This program also envisages 172 thous. sq.m of real estate, predominantly offices and parking, around the Moscow International Business Center Moscow-City.
5* Nikolskaya Kempinski Moscow hotel for 211 rooms was launched in soft opening regime in Moscow in May, becoming the second object of the chain in the capital. In May it was reported about a number of projects under international operators’ management in regional cities. It is planned to build a second hotel of Accor group in Kazan – Novotel for 120 rooms. The Tulip Inn hotel with the capacity of 100 rooms will be built in Kirov. Moreover, it was reported in May about the plans of Hilton group to launch a hotel in Tomsk and about a possible transition of a reconstructed complex of buildings on Marsovo Pole in St.-Petersburg meant for a hotel under the management of Mandarin Oriental Hotel Group company.
A landmark event in the professional retail property market of the Moscow Region was the opening of the first stage of the outlet center Vnukovo Outlet Village on 8km of the Kievskoe highway. Moreover, it was reported in May about a number of new projects of shopping centers in regional cities. Thus, the retail and entertainment center Riga Grand Mall will be opened in Pskov in 2014, the retail center MegaGRINN is planned to be constructed in Kursk in 2016. In May rental rates in the street retail segment did go through any considerable changes, and the amount of vacant areas was preserved at the minimal level of 1-3%.
Active launch of new settlements continued in the residential countryside market in May 2013: the sales were opened in four projects. The main products in the new supply, which has entered the market since the beginning of the year, are still land plots without building contracts and townhouses. Lion Group holding opened sales of land plots in a new cottage settlement “Santoriya” on 55 km of Simferopolskoe direction. In addition to it, the sales of households were opened in “Luzhki” settlement located in the Istra Region within 30 km of MKAD along the Novorizhskoe highway. In May the sales of the 3rd stage started in a business class cottage settlement “Chistie Prudi” on 17 km of the Yaroslavskoe highway and of the 2nd stage in an economy class cottage settlement “Berezovaya Roscha” on 27 km of the Novoryazanskoe highway. The price situation in the residential countryside property market did not undergo any considerable changes in May 2013. The demand for countryside households was still concentrated in the most affordable budget groups and this trend was characteristic of all the segments.