GAZETA.RU: How Much Does Centre of Moscow Cost
01 October 2012
How Much Does Centre of Moscow Cost
The Central Administrative Area encompasses 6,619.75 ha. The major part of the area is taken up by roads and passages: 3,790.3 ha. The area of the natural site is 1,316.58 ha. The population is 760.5 thousand people.
The Central Administrative Area is composed of 10 districts:·Arbat, Basmanny, Zamoskvorechye, Krasnoselsky, Meshchansky, Presnensky, Tagansky, Tverskoy, Khamovniki and Yakimanka.
The main problems of the administrative area are heavy traffic in roads and streets and a small number of parks in some parts of the Central Administrative Area.
“Road traffic situation in the Central Administrative Area leaves much to be desired and that is, probably, the main problem of the area. The Central Administrative Area is provided with well-developed infrastructure and enjoys great popularity among buyers”, Karen Melkonyan, Managing Partner of EliteCenter, says.
As reported by the Analytical Centre of Real Estate Indicators IRN.RU, notwithstanding restriction of building in the centre of Moscow, in the third quarter of 2012 in the Central Administrative Area sales of apartments in 53 newly erected houses are effected.
According to estimation of Welhome, major part of new apartments is located in the Khamovniki district. Then comes the Tveskoy district (8% from the market supply). Ostozhenka, Tagansky and Meshchansky districts each make 5% from the market supply.
In the third quarter of 2012 there started sales of 12 projects, and 9 newly erected houses were sold, among them, for example, the Literator residential complex, the Barrin House residential complex, the Clerkenwell House loft-apartments.
“Notwithstanding the policy of new metropolitan authorities, the market is quite active. However it is necessary to take into account that the process of project launch in the centre of Moscow is rather long, that is why the new projects actually appeared before Sergey Sobyanin’s coming, and just became ready to be sold not long ago.
It does not mean, however that after market launch of all the existing projects and their sale, there will not appear newly erected houses in Moscow. Undoubtedly, the city should develop including its historical centre. New rules of the game are still in the process of elaboration but we would like to believe that the authorities will follow a humane approach: reconstruction of shabby houses as well as new construction in the place of pulled down houses but with all historical facades preserved. Therefore, developers will have what to do in the centre of Moscow”, Oleg Repchenko, Head of Analytical Centre of Real Estate Indicators IRN.RU, explains the state of things in the Central Administrative Area.
According to IRN.RU, the average price of a square metre in the centre of the capital in the third quarter of 2012 amounted to 452,868 rubles. The lowest price of a square metre – 198,175 rubles – was recorded in the Krasnoselsky district and the highest one in the Presnensky district.
The cheapest project is Shater residential complex (in Verkhyaya Krasnoselskaya street), the price of a square metre here is 180,000 – 250,000. And the highest price of a square metre is in the Barkli Plaza residential complex on Prechistenskaya quay: 1.2 million rubles.
The majority of newly erected houses are composed of premium class projects.
“New construction in the centre is rather homogeneous. Projects differ only by scale of construction.”
Actually, elite real estate in the Central Administrative Area can be divided into two segments: club houses (like Gulrich House or Barkli Virgin House) and residential complexes (for example, Sadovye Kvartaly, Chetyre Solntsa, Italyansky Kvartal, etc.)”, Irina Mogilatova, General Director of TWEED real estate agency, says.
As Yekaterina Batynkova, Deputy General Director for Real Estate of the Sadovye Kvartaly Company, told Gazeta.Ru, the complex of club houses Sadovye Kvartaly is now the most large-scale elite housing project in Khamovniki. According to IRN.RU, the price of a square metre is 325,000 – 660,000 rubles.
The concept of development in the project Knightsbridge Private Park provides for four low rise detached houses with the residential floor area of 49.9 thousand square metres. Apart from that, as Enver Kuzmin, CEO of RESTAVRACIA N, told Gazeta.Ru,the project provides for a park that is going to take up two thirds of the neighbourhood area. According to IRN.RU, the price of a square metre is 585,000 – 910,000 rubles.
“For example, the club complex on Smolensky boulevard is composed of 28 flats with floor spaces from 166 to 272 square metres. The infrastructure includes a swimming pool, a gym, kids’ playroom, a lounge and an underground parking garage for 69 car spaces. The complex is at a high stage of readiness, presentation to the state commission is planned for the first quarter of 2013. Among large residential complexes there is the Oko mixed-use complex and one more project in the territory of Moscow International Business Centre Moscow City. The complex will consist of two towers with office premises, a hotel and apartments both for rent and for sale”, Tatyana Sharova, Head of Project Consulting and Analytics Service of Welhome, tells.
In relation to restriction of new construction in the centre of the city, new housing will appear also by means of conversion of historical buildings from offices into apartments. A specific featureof the apartments is impossibility of residence registration. The cost of a square metre is from 8 to 12 thousand US dollars.
According to IRN.RU, prices in the Central Administrative Area showed an increase of 14.4% for the year (third quarter of 2011 – third quarter of 2012).
According to experts, the same price growth rates for elite newly erected houses in the centre will remain in future, in particular, due to extension of project construction phase. “Prices are growing smoothly, without any spikes, on average, their increase is 10-15%. The demand is not feverish but stable. The same price trend is expected in the following year”, Irina Mogilatova says. “Prices for newly erected houses in the centre of Moscow are stably high, such tendency will remain until the end of the year. One of the major reasons is that in the Central Administrative Area there are very few vacant sites left for projects, the authorities have suspended approval of all new sites. That is why one can definitely say that there will not be such supply of newly erected houses in the Central Administrative Area as it used to be two years ago,” Alexander Poduskov, Sales Director of KR Properties, says.
However, according to expert opinion, there is some decrease in the price of a square metre of elite newly erected houses in the Central Administrative Area as soon as projects with high prices are sold out. For example, according to Knight Frank, from the beginning of 2012 prices for newly erected houses fell by 2% due to close of sales in Granatny 6.
Further dynamics of prices will be defined by the structure of demand. As Research Department of Knight Frank informed, the first to be sold on the market will be most liquid projects of lower price bracket. Therefore, the price of a square metre of newly erected houses in the Central Administrative Area may increase due to depletion of a cheaper offer and stay of overestimated expensive projects on the market.
GAZETA.RU