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A decline in the number of transactions in Moscow City has been observed since the first half of this year. During this period, the total number did not exceed 37.
Knight Frank Russia representatives report that only 37 apartments located in Moscow City were sold within three months (January-March 2022). Over the past 12 months, demand has fallen by 40%. The overall transaction budget has also decreased (to 3.6 billion rubles, or by 31%). The decline in demand for luxury real estate is explained by the sale of remaining properties at final prices and a reduced supply.
A. Solovyov, Acting Regional Director of the Real Estate Department at Knight Frank Russia, says, "Current demand in the cluster is viewed as deferred. Once new projects begin selling, transaction dynamics will likely improve." The last time new volumes were achieved was in 2018, when apartments were purchased in the first tower of Neva Towers. Subsequent supply growth was due to the division of larger options, replaced by compact, yet still popular, options. Sales will soon begin in Moscow Towers . It offers 19,000 square meters of total space, occupied by 14 penthouses and 210 apartments.
Over the past year, the supply volume has fallen by 59%. Buyers were offered 192 lots, which included options from:
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"EYE";
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Federation Towers.
The apartments on offer generally range from 50 to 100 square meters. These lots account for at least 37% of the total (54% in the first months of the year). Over the past few months, this figure has dropped to 17% due to the demand for these options. It's worth noting that there are no apartments on the market smaller than 50 square meters (a year ago, they accounted for 2%).
The average asking price remains at 856,000 rubles (per square meter). There has been a 29% year-over-year and 12% quarterly price increase. The budget is 137 million rubles.
Prices increased by 10% over three months, and by 60% over twelve. January and March saw further price increases at Neva Towers. Due to the dollar exchange rate fluctuations, the ruble price of apartments in the Oko building also changed.
