Vedomosti: Luxury Horizons on Asphalt
11 November 2014
Vedomosti: Luxury Horizons on Asphalt
2014 is shaping up to be a very successful year for luxury and premium class real estate.
At the start of the year sales started in a dozen luxury projects offering both multi-level and traditional one-level apartments and, according to realtors, that’s not the end. At least 15 more sites have been earmarked for luxury developments.
RESTAVRACIA N sales director Timur Sukharev notes that because of difficulties with getting loans from the banks, the number of new projects is bound to decline in the near future. ‘Getting a loan for a new development is turning into quite a bit of a challenge so developers that can finance their projects out of pocket will have an edge in the market. Projects are going to get smaller, building a major development over an abandoned industrial site will be hard to pull off,’ Sukharev notes. His company is currently considering joining a new development projects. ‘We’re only looking at sites in Khamovniki, assessing the risks and trying to predict what’s going to happen.’
Is Moscow’s luxury real estate market ever going to get saturated? Are we going to reach a point where there is no more any demand for luxury apartments and houses? Experts disagree over this. ‘We still don’t have enough luxury real estate,’ Timur Sukharev is certain.
The real estate market is growing consistently step by step but the negative externalities that the market players have no control over may put an end to the upward trend. That’s the opinion of Ms Rumyantseva. ‘Once we reach that point of saturation an implosion of the market is inevitable, even though if the economic outlook was better, the situation would be completely different.’
Source: Vedomosti.