Capital Group, a leading developer, decided to analyze the current Moscow primary residential real estate market, specifically examining existing supply in ultra-tall buildings. Its analysts found that supply fell to 243,300 square meters in 2019, a 7% decrease from the market level at the beginning of the year.
This can be explained by the fact that the market saw no new supply throughout 2019, as none of the projects already under construction opened for sales, and others had not yet started. Skyscraper construction is a technically complex process, and the requirements for them are very high.
Thus, by the beginning of 2020, the total supply of new residential space in the primary market amounted to 243,300 square meters. This includes properties in Old Moscow, as well as apartments in modern skyscrapers of all buildings over 40 stories. However, only 42% of all supply to date is from projects by developer Capital Group. These projects are located in the new residential complexes NEBO and Capital Towers, as well as the multifunctional complex OKO, located in the heart of Moscow City.
This explains why the districts where Capital Group is implementing its projects, Presnensky and Ramenki, took the lead in 2019. They account for 54% and 22%, respectively, of all available properties in Moscow.
According to P. Isaev, Commercial Director of Capital Group, the skyscraper format is currently popular among people from all walks of life, including families with children. This is due to the use of state-of-the-art construction technologies and innovative engineering solutions in their construction. Therefore, supertall buildings are in many ways a step above other properties in the same class.
Today, Capital Group's portfolio includes skyscrapers of two different classes. These include, first and foremost, the Capital Towers and OKO complexes, which are premium residential, and NEBO, which represents business-class real estate.
However, as noted above, the reduced supply has led to rising prices. According to Capital Group analysts, since January 2019, the average price per square meter in a skyscraper has increased by 13% for apartments and by 15% for condos. Thus, in January 2020, it was 315,300 rubles per square meter for apartments and 514,500 rubles per square meter for condos. Consequently, the average weighted price per square meter today is almost 382,000 rubles.
