Residential Real Estate Market Overview Residential Real Estate Market Overview Q1 Q1 2013 Residential Real Estate 2013
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RESIDENTIAL REAL ESTATE Q1 2013 MARKET OVERVIEW RESIDENTIAL REAL ESTATE MARKET OVERVIEW RESIDENTIAL REAL ESTATE MARKET OVERVIEW Q1 Q1 2013 RESIDENTIAL REAL ESTATE 2013 Content Summary…………………………………………………………………………………….……………... 3 Residential real estate. Russia. Moscow region. Residential construction……………...………….. 5 Residential real estate. Moscow…………………………………………………………………………. 6 Residential real estate. Elite segment. Moscow. Sale..……………………………..………………… 9 Residential real estate. Elite segment. Moscow. Rent………………………….…………………….. 12 Residential real estate. Moscow region……………………………………...................................... 16 Residential real estate. New Moscow………………………………………………………………..... 19 Countryside. Land market………………………………………………………………………………. 21 All rights reserved. This report has been prepared for information purposes only. The data and information contained herein are the exclusive property of Blackwood Real Estate company. Reproduction of the report in total or in part is allowed only with a prior written permission of the Blackwood real estate company. Quoting is allowed with refer- ence to the source. RESIDENTIAL REAL ESTATE MARKET OVERVIEW Q1 RESIDENTIAL REAL ESTATE 2013 Russia. Moscow Region. Residential construction According to Rosstat data, 10.4 mln. sq.m. of residential areas Dynamics of residential construction volumes in Russia entered the Russian market. These indices exceeded the indica- tors of the past year by 6%. And the plans for residential delivery also increased: 70 mln. sq.m were planned to be introduced in 2013. For comparison: the delivery indicator stayed at the level of 58-65 mln. sq. m. in the last years. For the first three months of 2013 the Moscow Region - a sta- ble leader in residential construction of the past years—ranked first by the commissioning volumes. 889 thous. sq.m of residential space were introduced to the market here for the period under consideration. The Krasnodar Kray ranked second by the delivery volumes, 876 thous. sq.m. were delivered here, Tatarstan fol- lowed—759 thous. sq.m. Source: Rosstat By the results of Q1 2013, 636 thous. sq.m. (30 houses) en- tered the Moscow market and more than 300 thous. sq.m. en- Monthly volumes of residential release in Russia tered the territory of New Moscow. All in all, 3 mln. sq.m. of resi- dential space are planned for commissioning in 2013, including 680 thous. sq.m. at the expense of the city budget. The plan for the development of adjacent territories in 2013 constitutes 1.1 mln. sq.m. Monthly volumes of residential release in Moscow* Source: Rosstat * - data on the federal city of Moscow and the Moscow Region are presented with account of change of their border since 1 July 2012 in accordance with the decision of The Council of Federation of the Federal Assembly of the Russian Federation as of December 27 2011. No 560-SF. Source: Rosstat Leaders by the construction of residential houses among the entities of RF in January-March 2013, thous. sq.m.* Source: Rosstat 3 RESIDENTIAL REAL ESTATE MARKET OVERVIEW Q1 RESIDENTIAL REAL ESTATE 2013 Moscow. Supply During Q1 2013 the supply in the primary market of Moscow Supply structure in the primary market by AD of Moscow, was still in the process of increasing by new properties. Even in March 2013 January, which is considered to be a period of low activity in the residential real estate market due to long New Year holidays, the market increased by several new properties. However, as op- posed to the previous periods, almost half of new supply in Q1 2013 consisted of apartment complexes. All in all, 18 new properties (residential houses, buildings in the structure of residential complexes) entered the Moscow mar- ket in Q1 2013 both in the residential segment and in the seg- ment of apartments. The volume of new supply amounted to about 130 thous. sq.m, almost half of which—apartment com- plexes of comfort-, business– and elite classes. Traditional busi- Supply structure in the secondary market by AD of Moscow, ness and comfort class residential complexes constitute more or March 2013 less similar volume of new supply (by 20%), 10% - new econ- omy class offers. New supply in the elite segment constitutes another 2%. More detailed information for some properties is presented below in a spreadsheet. The aggregate supply volume in the primary market by the results of Q1 2013 stayed at the level of the previous period and amounted to 1.4 mln. sq.m (with account of apartments and elite new buildings) or 262 properties. The supply structure in the primary market of Moscow looked Source: Blackwood Company data as follows in Q1 2013: n Q1 2013, comfort class primary segment increased by a new • Business class occupied 43% of the total supply volume; building in a multifunctional complex in Melnikova str. (bld.4), in • Economy and comfort class new buildings constitute al- RC “Life-Volzhskaya” (bld. 6), as well as by two new buildings in most one fourth of the total supply; RC “Wellton Park” (bld. 16, 17). The supply volume in these prop- • Elite new buildings constitute about 12%; erties amounted to about 27.8 thous. sq.m. Moreover, sales were resumed in the buildings of RC “Zagorie”, new volume was re- • Offers in elite, business and comfort class apartment leased in RC complexes—a little bit more than 20%. “Albatros” and “Podsolnukhi”. New offers for sale in a business class segment in Q1 2013 New supply of the economy class segment in Q1 2013 was were presented in RC “Sokoliny Fort” (2, 1st Myasnitskaya str.), represented by a new building in mcr. “Nekrasovka- in RC “Lomonosovsky” (8B, Panferova str.), as well as in some park” (developer is Leksion Development), which offered flats in other residential complexes already presented in the market. the shell&core condition. Some economy, comfort and business class properties introduced to the market in Q1 2013* Material of Address Name Developer Class AD District walls 2, 1st Myasnitskaya str. Sokoliny fort Don-Stroy Business EAD Bogorodskoe Monolith Novie Chere- Lomonos- 8B, Panferova str. Lomonosovsky Business SWAD Monolith mushki ovsky The intercrossing of Chistova str., Malisheva str., Shkuleva str. and 7th Life-Volzhskaya GC Pioneer Comfort SEAD Tekstilschiki Monolith Tekstilschikov str., bld. 6 Khoroshevo- Karamishevskaya emb., bld.16, 17 Wellton Park Krost Comfort NWAD Monolith Mnevniki 1, 3 Melnikova str., bld. 4 - Promstroyinvest Comfort SEAD Yuzhnoportovy Monolith Luberetskie aeration fields, quarter 4, Leksion Develop- Nekrasovka-park Economy SEAD Nekrasovka Panel bld. 3 ment Source: Blackwood Company data * - information, concerning elite class properties and apartment complexes, is presented in the corresponding sections 4 RESIDENTIAL REAL ESTATE MARKET OVERVIEW Q1 RESIDENTIAL REAL ESTATE 2013 Moscow. Demand In Q1 2013, according to Rosreestr Administration data, 14 Dynamics of a number of registered deals, Moscow 523 transactions* were concluded in Moscow, which were lower than the past year indices by 25%. The decline of volume of transactions was recorded in March, which was unconventional for this month, however, it may be referred to the change of cal- culation procedure. On the whole, buyers’ activity stayed high in the market, which was indicated by the growth of mortgage deals volumes and transactions concluded according to equity participation * agreement. Thus, 6 594 mortgage transactions were concluded in Q1 2013, which was 9% higher than the past year index. The largest increase was noted for the transactions con- Source: Rosreestr Administration cluded according to equity participation agreements. All in all, 4, 325 transactions were concluded in Q1 2013, which exceeded Volume of indebtedness under credits provided to individu- the indicators of 2012 almost fivefold. Volumes of indebtedness under credit for the purchase of residential space, including under mortgage credits, continued to grow. The average weighted mortgage rate in Moscow, accord- ing to Bank of Russia data constituted 12.7% by the end of January 2013**, the average weighted term of credit by mort- gage credits - 14.5 years (173.5 months). * - according to federal law No 302−FZ as of 30.12.12, registration of residential premise sale and purchase agreement has been cancelled since March 1. Only the transfer of right for the alienated property is subject to state registration. ** - the latest available data as of the date of the overview release Source: Bank of Russia data Moscow. Prices By the results of Q1 2013 the average-weighted supply Dynamics of prices, Moscow price in the primary market settled at the level of 196, 570 rub. per sq.m. (exclusive of elite segment, apartments and townhouses), the dollar equivalent—$6, 360 per sq.m. As opposed to the previous period the growth of this index in ruble equivalent was noted at the level of 5.1%. The analo- gous increase of the average price in dollars constituted +3.8%. The average supply price in the secondary residential market gained 2.4% versus Q4 2012 up to the level of 207, 340 rub. per sq.m ($6, 710 per sq.m). The analogous in- crease of the average price in dollars constituted +1.1%. By the results of Q1 2013 the average supply prices in the primary market depending on class were established at the fol- lowing levels: Source: Blackwood Company data 5 RESIDENTIAL REAL ESTATE MARKET OVERVIEW Q1 RESIDENTIAL REAL ESTATE 2013 Moscow. Prices • Economy class - 118, 010 rub. per sq.m ($3, 820 per Average prices in the residential market by districts of Mos- sq.m); cow, $ per sq.m, March 2013 • Comfort class - 145, 690 rub. per sq.m ($4, 720 per sq.m); • Business class - 228, 690 rub. per sq.m ($7, 400 per sq.m). And the trend of prices growth was noted in all the seg- ments of the primary residential market. The most consider- able growth (+6.8%) was noted in the comfort class segment, which was caused by the growth of prices in several proper- ties, and among other things by the growth of construction readiness stage, as well as by the delivery of new properties at rather high prices (the average supply price in new build- ings of RC “Wellton Park” in March 2013 constituted more than 195, 00 rub.