From January to June 2022, the number of real estate transactions in Moscow, considering business class property only, reached 6,000. This represents a 45% decrease compared to the same period of the previous year.
The total footage of the property sold reached 396 thousand square meters, down by 45% 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 12,800 lots for sale (up by 19% compared to half a year ago), with total footage amounting to 894 thousand square meters (up by 15%).
The minimum number of lots sold in the period over the past four years is comparable to the results of the pre-pandemic 2018. One of the drivers of supply growth was a decrease in demand. However, the main replenishment of the market was carried out during Q2, when a large number of finished projects went on sale.
Among the trends, caution is noted of both potential buyers and developers. Nevertheless, an increase in the number of transactions is expected already from the third quarter: subsidized mortgages, the expiration of term deposits, promotional offers from developers, the release of new projects – these and other factors should contribute to a gradual recovery in demand.
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.