Luxury housing reduced interest rates – Kommersant FM
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Moscow premium new buildings fell noticeably in price in January 2024. The leader in discounting was the Khamovniki district, where the price per square meter in elite residential complexes decreased by almost 10%, to 1 million rubles, analysts from the Bon Ton company calculated. The second place in terms of the rate of cost reduction was taken by Ramenki – minus 4.9%, and the Meshchansky district was in third position.
What is the reason for such a rare phenomenon for the premium segment? And how long can it last? Managing partner of Webster, Konstantin Kovalev, notes that the demand for premium housing in Moscow has been largely satisfied, but the trend will last no more than six months: “There has never been a mortgage for luxury housing, it has always been either expensive or practically non-existent.
This segment is based solely on market demand and is not supported by any government mortgage programs. Personally, I see that at the moment interest in the premium class has become lower, a fairly understandable phenomenon given the lack of obvious economic growth.
But you need to understand that this is temporary. Due to the fact that the economy is now closing to one degree or another, the opportunity to invest in foreign countries is limited, and all (or almost all) earned capital should, in theory, remain in the country. In general, for the most part this will fuel demand in the elite segment. Today we can state that the demand for luxury real estate in Moscow is saturated, and, probably, the trend will continue at least through the first half of 2024.”
As Bon Ton analysts note, many developers in January made discounts on new projects in the premium segment, especially for apartments. In addition, small-sized objects quickly left the market, as a result of which the share of large-format lots, which are beyond the means of a certain part of consumers, increased.
However, Artem Tsogoev, a member of the board of directors of the investment platform SimpleEstate, believes that now the industry is experiencing rather a price correction, which is often of a technical nature: “In the last months before the New Year, there is traditionally activity in the housing market, including premium housing. Developers, sensing demand, raise prices for some product categories; accordingly, after the New Year, in order not to lose sales momentum, prices begin to adjust.
This leads to the fact that price reductions are recorded solely on paper. It should be noted that small lots are still in greatest demand, and only large apartments, apartments, etc. remain on display, because of this, developers are forced to make discounts on them.
When answering the question of how long this will last, you need to look at the areas themselves, that is, Khamovniki, Ramenki and others, to see if new projects are expected to be built there or sales will start in the near future. These factors may lead to changes in prices, which may increase due to the fact that small lots in new projects become available for sale.”
In many high-budget Moscow locations, as Bon Ton analysts note, prices per square meter of premium housing did not change in January. The only area where they even grew was Zamoskvorechye, although the increase was only 0.2%.
Everything is clear with us – Telegram channel “Kommersant FM”.
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