From January to March 2021, the number of real estate transactions in Moscow, considering upper class property only, increased by 66% compared to the same period of the previous year.
About 16% of all transactions were signed for deluxe property at an average price of 197 million RUB per lot. Number of these transactions increased by 8% year-on-year. Meanwhile, the lions share of 84% has been secured by premium real estate (up by 85% at an annual rate), at an average price of 77 million RUB per lot.
At the end of the reporting period, total supply available in the market reached 2,160 lots for sale (up by 2% compared to a quarter ago), with 410 lots of the deluxe class (down by 15%) and 1,750 lots of premium level (up by 7%). The total footage of all those lots available amounted to 278 thousand square meters (up by 5%).
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.