Over five years, average prices for new buildings within the Boulevard Ring of Moscow have almost doubled
Analysts have studied how the market for new buildings in the very heart of Moscow — within the Boulevard Ring — has changed over five years rings. Experts also took into account the prestigious territory of Balchug Island, bounded by Serafimovich Street and the Bolshoi Ustinsky Bridge. The study showed that the number of the most expensive apartments within walking distance from the Kremlin has doubled, and their price has increased by 81%.
In 2018, 134 premises in five new buildings could be purchased within the Boulevard Ring. By the end of 2023, the number of residential complexes has reached seventeen, and there are 269 apartments and apartments in them.
Competition has increased most noticeably among developers in the most expensive segment of the market. Five years ago, buyers were offered two deluxe projects, two luxury new buildings and one premium complex. By the end of 2023, developers had already implemented eleven new deluxe-class buildings, five luxury projects and one premium complex within the Boulevard Ring.
In 2018, apartments accounted for only 27% of the premises in new buildings inside the Boulevard Ring (the rest were apartments), at the end of 2023 — 35%. Complexes with apartments and apartments began to appear at the same time.
We remind you that apartments are not considered housing from a legal point of view, you cannot obtain permanent registration in them, be attached to a district clinic, school, etc. In fact, this is a type of commercial real estate. However, for wealthy people such disadvantages rarely matter.
“For buyers of expensive real estate, the legal status of the premises is not always important, which is the reason for the large number of apartments on the market of new buildings on the Boulevard Ring,” comments Dmitry Mutovkin, general director of the development company Petrostil Invest. — From an investment point of view, there is no difference between apartments and apartments. If you purchase a collectible penthouse in a historic mansion in the Boulevard Ring area, its status will in no way affect your life in it or the possibility of further resale.
The prices for new buildings near the Kremlin are amazing. If at the end of 2018 the average cost per square meter within the Boulevard Ring was 1.09 million rubles, then now it is 1.98 million (plus 81%). For comparison: in the overall market of new buildings in Moscow over five years, the average cost per square meter increased by 68% (from 268 thousand to 451 thousand rubles).
The area of premises offered by developers on the Boulevard Ring over five years increased by 19%. If at the end of 2018 this figure was 138 square meters, now it is 164 square meters. m.
— Real estate within the Boulevard Ring is highly likely to become a collector's item due to its location, architecture and project concept, says Anna Radjabova, director of luxury real estate management at Metrium Premium. — There will always be a buyer with a lot of money who is ready to buy housing a step away from the Kremlin for reasons of prestige. Many houses here themselves turn into brands that are talked about in high circles.