From January to March 2022, the number of real estate transactions in Moscow, considering business class property only, reached 4,200. This represents a 16% decrease compared to the same period of the previous year. Nevertheless, the number of lots sold is comparable to the results of pre-pandemic 2019, and it is not yet possible to talk about a significant decline in demand.
The total footage of the property sold reached 279 thousand square meters, down by 14% at an annual rate. The average footage was 66.7 sq. m per lot, up by 2% year-on-year. The average cost of the property amounted to 28.1 million rubles per lot (up by 27% compared to a year ago)
In the current conditions of uncertainty, few developers have dared to introduce new projects to the market, which leads to reduced supply. At the end of the reporting period, total supply available in the market reached 9,300 lots for sale (down by 13% compared to a quarter ago), with total footage amounting to 664 thousand square meters (down by 14%).
Despite the increase in the cost of finishing materials, the share of supply of lots with finishing remained at the level of 40%.
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.