From 2014-2019 1 square meter in new apartments, on the contrary, fell in price by 4.3%
Over the past five years, the average price of primary housing in Moscow has increased by 70.9%. The price per square meter increased the most not in the prestigious CJSC and SZAO, but in the Southern Administrative District — by 133.2%. MK looked into why new buildings today are rising in price most strongly in the south of the capital.
In the second quarter of 2024, the average price of 1 sq.m. in the primary market of Moscow is 465.6 thousand rubles,” said Ruslan Syrtsov, managing director of the Metrium company. For comparison, in 2014-2019. 1 square meter in new buildings in the capital, on the contrary, fell in price by 4.3%. According to the expert, the decline in prices of Moscow primary housing in the second half of the 2010s. does not indicate a drop in its liquidity. This situation is partly explained by changes in the structure of the exhibition. In 2014, the business class dominated the total supply, and in 2019, the mass segment. In addition, the price fell as a result of the 2014 crisis and then stagnated as there were no growth drivers.
However, in relation to 2014-2019. we can safely talk about stagnation, since prices grew at most at the level of inflation. The fact is that this period was less saturated with external events influencing the dynamics of consumer activity. We can only highlight a slight decline in sales after the “Crimean spring”. In turn, for 2019-2024. there were many significant events that changed market conditions: the industry’s transition to project financing, the pandemic, the introduction of mortgages with state support, etc.
Sales temporarily dipped after mobilization was announced in 2022, but the market quickly recovered as the domestic economy demonstrated resilience to external challenges. In 2023, a record was set in the entire history of the market for the number of registered equity participation agreements — over 100 thousand. The maximum number of transactions in the history of the market is associated with an increase in the key rate and rush demand.
In 2019-2024 the rise in prices covered the entire primary market of Moscow. But in terms of segments, the dynamics look ambiguous. According to Syrtsov, in the mass segment over the past five years, a square meter has risen in price by 95.7% (up to 326.1 thousand rubles), in the business class — by 88.8% (up to 449.7 thousand rubles) , in the premium class — by 35.4% (up to 663.8 thousand rubles), in the elite segment — by 84.8% (up to 1.8 million rubles), in New Moscow — by 106.6 % (up to 245 thousand rubles).
“Statistics are not deceptive, but it is important to interpret them correctly,” says Dmitry Golev, commercial director of Optima Development. “On the one hand, premium housing has risen in price less than new buildings in other segments over the past five years. On the other hand, this is explained exclusively by the emerging trend towards decentralization of premium housing. At the beginning of the second quarter of 2019, 63.8% of premium new buildings were located in the Central Administrative District, now — 29.4%. Naturally, regardless of the characteristics, housing outside the historical center is cheaper.”
Note that over the past five years, prices on the primary housing market have increased significantly not only in all segments, but also in all districts of Moscow. And yet the rate of increase in prices differs. The maximum price increase was recorded in the Southern Administrative District (+133.2%), the minimum in the Northern Administrative District (+67.8%).
– The sharp increase in the cost of new buildings in the south of Moscow is mainly due to the intensive development of the location, – notes Liliya Artsibasheva, commercial director of Regions Development. – The transport infrastructure of the district is being actively updated: in recent years, BKL metro stations have been opened, new transport interchanges have been built, including a bridge across the Novinki backwater, the Southern River Station has been reconstructed, and regular electric transport services have been launched along the Moscow River.
In addition, Modern social and recreational facilities are being built in the south of Moscow. The most striking example is the “Dream Island” cluster on the Nagatinsky Peninsula.