“The gap between the cost per square meter on the foundation pit and the finished one is shrinking”

Kommersant FM columnist Svetlana Bardina talks about how the cost of a residential meter depends on the stage of implementation and class of the project.

In Moscow, primary housing at the initial stage of implementation is on average almost 16% cheaper than in houses that have been put into operation. For comparison: at the beginning of 2023, the weighted average cost of a residential meter in a new project at the construction stage was 30% lower than in completed buildings, and five years ago – by 35%. It is obvious that the gap between the cost of a “square” on a foundation pit and a finished one is shrinking, according to experts from the Metrium company. But the trend is not visible in all classes.

The difference in the cost per square meter in mass residential buildings on a foundation pit within the old borders of the capital is slightly more than 5%. A year earlier it was at the level of 20%, five years ago – within 4%. In business class the difference is already about 8%. A year ago the price gap was 9%, five years ago – more than 20%. During this time, business-class projects themselves have become almost 1.5 times more in demand, which makes it possible for developers to reduce the discount on the foundation pit.

The situation is completely different in the premium class; ready-made new buildings, on the contrary, are more affordable than buildings on a foundation pit, the difference is about 9%. This dynamics is mainly due to adjustments in the exposure structure. Today, at the excavation stage, many high-budget objects are presented; their status is close to elite, but they are still classified as premium due to their scale or location.