From January to March 2022, the number of real estate transactions in Moscow, considering upper class property only, decreased by 30% compared to the same period of the previous year.
About 20% of all transactions were signed for deluxe property at an average price of 223 million RUB per lot. Number of these transactions decreased by 14% year-on-year. Meanwhile, the lions share of 80% has been secured by premium real estate (down by 34% at an annual rate), at an average price of 104 million RUB per lot.
At the end of the reporting period, total supply available in the market reached 1,100 lots for sale (down by 15% compared to a quarter ago, or by 49% at an annual rate), with 370 lots of the deluxe class (down by 10%) and 730 lots of premium level (down by 18%). The total footage of all those lots available amounted to 161 thousand square meters (up by 5%).
Further development of the real estate market as a whole depends on a large number of factors, however, as practice shows, the high-end segment may remain less susceptible to external influences. Among the highlights, it is worth noting that the current key rate excludes a possibility of sharp replenishment of supply and a massive launch of new projects by developers. Increased cost of construction, disruption of logistics supplies and fluctuations in the exchange rate do not provide confidence to market participants.
The demand for upper class real estate property is a key indicator anticipating consumers’ interest for premium and high-end furniture in the area, in short to medium terms. We are tracking this indicator more closely within our extended Market Reports.