From January to June 2022, the number of real estate transactions in Moscow, considering upper class property only, decreased by 40% compared to the same period of the previous year.
About 14% of all transactions were signed for deluxe property at an average price of 237 million RUB per lot. Number of these transactions decreased by 39% year-on-year. Meanwhile, the lions share of 86% has been secured by premium real estate (down by 40% at an annual rate), at an average price of 93 million RUB per lot.
At the end of the reporting period, total supply available in the market reached 1,570 lots for sale (up by 28% compared to half a year ago), with 530 lots of the deluxe class (up by 28%) and 1,040 lots of premium level (up by 28%). The total footage of all those lots available amounted to 270 thousand square meters (up by 43%).
Further development of the real estate market as a whole depends on a large number of factors, however, as practice shows, the high-end segment may remain less susceptible to external influences. Over the past 3 months, the market offer has significantly expanded, in the near future a number of high-quality elite new buildings in the top locations are being prepared for release. It is highly likely that new projects will support demand in future periods, and thus the second half of the year can show good results.
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.