From January to June 2021, the number of real estate transactions in Moscow, considering upper class property only, increased by 126% compared to the same period of the previous year.
About 13% of all transactions were signed for deluxe property at an average price of 193 million RUB per lot. Number of these transactions increased by 34% year-on-year. Meanwhile, the lions share of 87% has been secured by premium real estate (up by 153% at an annual rate), at an average price of 80 million RUB per lot.
At the end of the reporting period, total supply available in the market reached 1,720 lots for sale (down by 19% compared to half a year ago), with 340 lots of the deluxe class (down by 30%) and 1,380 lots of premium level (down by 16%). The total footage of all those lots available amounted to 230 thousand square meters (down by 13%).
Several factors contributed to the high level of demand for the upper class real estate property in the reporting period. Lowest ever mortgage rates have become a driver, providing a fairly easy entry into mortgage transactions, especially with the premium class property. 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 high-quality real estate. In addition, a certain number of wealthy people have returned from far abroad countries, and also consider buying new property now.
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.