| Price growth on the Moscow real estate market is slowing down In the summer, there was a noticeable slowdown in price growth on the Moscow real estate market. Thus, according to the analytical center “Real Estate Market Indicators”, in April housing prices increased by 3.5%, in May by 2.5%, and in June by only 0.6%. In the first half of July, apartment prices did not rise at all. Moreover, for some types of housing in mid-July (primarily this is a monolith of “economy” and “business” classes at prices ranging from $1,800 to $2,500 per sq. m), developers and realtors began offering discounts of 2 to 5%, calling These are summer offers. There have been no such actions in Moscow for three years - all the time while the crazy rise in real estate prices continued.
Are these phenomena really characteristic of the usual “off season” or do investors, accustomed to high price dynamics, have a real reason to panic?
A number of analysts saw in these events the imminent stagnation and even decline of the residential real estate market. General macroeconomic uncertainty also added fuel to the fire: the recent banking crisis (which, however, ended as quickly as it began) and, as a consequence, the increased export of capital abroad.
However, it is too early to bury the Moscow real estate market. Moreover, dozens of factors that determine the development and life of the apartment market indicate an imminent resumption of growth on it. For example, oil prices - one of the main factors influencing this economic sector - are still high. According to the head of the analytical department of the MIEL agency, Gennady Sternik, the critical price, after which stagnation occurs in the Moscow real estate market, is the level of oil prices of 18-21 dollars per barrel.
The migration to Moscow of the wealthiest (and therefore solvent) residents of the regions, who have extremely high demand for real estate in the capital, does not stop. Moreover, there is evidence that in the last six months (thanks to the same high prices for basic commodities), the flow of migrants to Moscow has increased. Thus, Moscow City Duma deputy Mikhail Moskvin-Tarkhanov, who oversees the construction industry in the legislative assembly, claims that today 80% of all “medium and high-level” housing in the capital is purchased by visitors.
There is every reason to assert that in the medium term these and other factors will not disappear anywhere and, therefore, the Moscow real estate market will strive for new sky-high heights, primarily in price. Olga PRYANIKOVA |
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