“Investors should pay attention to those locations where there are few new projects”

Kommersant FM columnist Svetlana Bardina talks about how the cost of housing changes from the zero cycle to commissioning in different areas.

As construction readiness for new buildings increases, so do prices. High-budget houses under construction become more expensive from the initial cycle to commissioning by almost 3% quarterly, Rariteco specialists found out after analyzing the history of the implementation of elite and deluxe class projects put on sale over the past five years.

Experts selected properties put up for sale in 2018-2019 in the Central District. Further, houses in which the volume of exposure was insignificant and not representative in price and structure were excluded from the selection. The study showed that on average over four and a half years, the cost of a “square” in these objects grew by 3% quarterly. In most projects in 2019, prices increased by more than 80%.

Next, experts studied projects for 2021 to check whether the rate of price growth in those new buildings that are still under construction is being maintained. As a result, it turned out that in eight selected projects the pace is even higher, already by more than 3% quarterly. In terms of districts, the highest rates are demonstrated by projects in Yakimanka and Zamoskvorechye, from 5% to almost 7% per quarter.

Experts note that investors should pay attention to those locations where there are few new projects or where there have not been any for a long time. After all, in the market of new luxury and deluxe class buildings, a lot depends on the location. Now there is one high-budget house at an early stage in such areas as Presnensky and Tverskoy, as well as on Arbat and Zamoskvorechye.