Experts predicted a further rise in the price of elite real estate in the Russian Federation

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Currently, there are proposals on the elite real estate market that have a high potential for price growth. This was announced to Izvestia on Tuesday, March 2, by the director of the consulting and analytics department at Kalinka Group, Alexander Shibaev.

“Now there are offers in the elite market, which have a high potential for price growth. That is why, in 2020, a record of transactions in the elite market in Moscow was recorded. The average price in the primary market has grown by 15% over the year, and has the potential for further growth – about 10% more in 2021, ”he said.

According to the expert, the rise in prices in the Russian capital, in contrast to world capitals, was associated not with economic growth, but with the unstable economic situation, the coronavirus pandemic and the volatility of the ruble exchange rate. He also stressed that non-elite housing has more disadvantages, since it is more susceptible to negative economic and political influences.

In turn, Andrey Soloviev, director of the city real estate department of the Knight Frank consulting company, noted that, given the current situation, elite housing remains a profitable purchase, since it is an absolutely understandable product, and clients, as a rule, already have experience in acquiring and owning real estate. One of the main advantages of elite real estate, he called the stability and often the rise in prices and rental rates during financial crises.

As Maria Litinetskaya, managing partner of Metrium (member of the CBRE partner network), said, in 2020 the construction industry avoided stagnation thanks to the launch of a mortgage rate subsidy program. Cheap housing loans provoked a rush of demand for apartments in new buildings, which led to a shortage of supply, and a shortage of liquid lots in the exposition caused a rapid rise in prices.

In Moscow, according to her, new business-class buildings have risen the most – by 24%. The cost of apartments in the mass segment increased by 19%, the premium class rose in price by 12%, and the lowest dynamics was demonstrated by elite projects – 6%. In general, the annual increase in the price of primary housing was 18%. In addition, Litinetskaya noted that the purchase of elite housing is a profitable investment, and we are talking about both short and long-term investments.

“Definitely, it is necessary to buy elite real estate today. On the one hand, this is dictated by the unstable economic situation in the future – in such situations it is necessary to give preference to more understandable and reliable assets, on the other hand, it is obvious that everything is getting more expensive, ”said Dmitry Khalin, managing partner of the Savills elite real estate agency in Russia.

He added that there has already been a basic price increase since the pandemic has emerged and will continue to rise. The expert also pointed out that in Moscow there are fewer and fewer “white spots” for building, therefore, each new project turns out to be more expensive than the previous one. In addition, Khalin noted that in modern conditions, after a slight rise in prices, many developers have entered into a competition for the buyer, offering innovations, which were very few before.

Earlier that day, it became known that in 2020 Moscow took the fifth place out of 100 in the ranking of changes in prices for elite housing by the Prime International Residential Index (PIRI 100), St. Petersburg entered the top 10, having risen from 61st to eighth place …

According to The Wealth Report 2021 of the international consulting company Knight Frank, the rise in prices in the Russian capital amounted to 9.9%, moving the city up 11 positions. At the same time, a year earlier, elite residential real estate in Moscow rose by 4.7% (16th place).

An even more dynamic rise in the ranking was demonstrated by St. Petersburg, which last year moved from 61st to eighth place, the rise in prices in the Northern capital of Russia amounted to 8.7%.