From January to June 2021, the number of real estate transactions in Moscow, considering business class property only, reached 11,000. This represents a 64% increase compared to the same period of the previous year.
The total footage of the property sold reached 723 thousand square meters, up by 54% at an annual rate. The average footage was 65.5 sq. m per lot, down by 6% year-on-year. The average cost of the property amounted to 22.9 million rubles per lot (up by 19% compared to a year ago)
At the end of the reporting period, total supply available in the market reached 9,300 lots for sale (up by 8% compared to half a year ago), with total footage amounting to 698 thousand square meters (up by 5%).
Several factors contributed to the high level of demand for the business class real estate property in the reporting period. Lowest ever mortgage rates have become a driver, providing a fairly easy entry into mortgage transactions. That is, a larger circle of people can afford the purchase, albeit with the involvement of credit funds. Substantial impact on demand was also exerted by low interest rates on deposits, an alternative to which was investment in real estate.
The demand for business class real estate property is a key indicator anticipating consumers’ interest for medium-high priced furniture in the area, in short to medium terms. We are tracking this indicator more closely within our extended Market Reports.