Property Owners in Moscow Set to Profit from Rocketing House Prices
Real estate prices in Russia’s capital city of Moscow have doubled over the last 12 months, and as a result many owners are choosing to sell and collect the cash tied up in their property.
Property prices are soaring in Moscow due to a combination of factors: a greater amount of cash and loans available for property purchases has caused an increase in demand; housing in the city is limited; and there is a shortage of secure investment alternatives. Property prices are high across the board, although certain areas are particularly expensive. The average price in the city is a little over $5,000 per sq.m., whereas in the prestigious Patriarch’s Pond area prices start at $10,000 per sq.m. (property is generally bought and sold in US Dollars in Moscow).
Although demand may decrease in the future due to the changeable economic and political conditions in Russia, it is not expected that prices will decline to any significant degree without a considerable shift in levels of supply and demand. Overseas buyers have little effect on Moscow’s market; they make up a small proportion of owners and as prices grow, this proportion is likely to become smaller. Of the Moscovites, many wish to move from the small apartments associated with Communist-era housing, in which they currently live. Also, many Russian investors who have made money from the oil or commodities market want to buy in the capital, for investment purposes or to have a base in the city.
Of those owners of Moscow real estate who are seeking to sell, the next step for many is likely to be an overseas purchase. Cashing in on their own property will often provide enough to buy something completely different to a Moscow apartment, such as a much larger property in one of Europe’s cheaper destinations.
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Property prices are soaring in Moscow due to a combination of factors: a greater amount of cash and loans available for property purchases has caused an increase in demand; housing in the city is limited; and there is a shortage of secure investment alternatives. Property prices are high across the board, although certain areas are particularly expensive. The average price in the city is a little over $5,000 per sq.m., whereas in the prestigious Patriarch’s Pond area prices start at $10,000 per sq.m. (property is generally bought and sold in US Dollars in Moscow).
Although demand may decrease in the future due to the changeable economic and political conditions in Russia, it is not expected that prices will decline to any significant degree without a considerable shift in levels of supply and demand. Overseas buyers have little effect on Moscow’s market; they make up a small proportion of owners and as prices grow, this proportion is likely to become smaller. Of the Moscovites, many wish to move from the small apartments associated with Communist-era housing, in which they currently live. Also, many Russian investors who have made money from the oil or commodities market want to buy in the capital, for investment purposes or to have a base in the city.
Of those owners of Moscow real estate who are seeking to sell, the next step for many is likely to be an overseas purchase. Cashing in on their own property will often provide enough to buy something completely different to a Moscow apartment, such as a much larger property in one of Europe’s cheaper destinations.
If you wish to see the original article please click here
posted by Obelisk International at 10:39 am
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