Apartment in Moscow continued to fall in price after the extension of preferential mortgage

Competition for the buyer

In February, housing prices in the Metropolitan new buildings located on the site from the Third transport ring to MKAD, have fallen on average by 9.5% to 201,9 thousand rubles. per 1 sq m, compared to February 2015, according to the data of analytical centre IRN. According to the company “Metrium Groups”, the fall continued, but at a slower pace — by 4.5%, to is 147.5 thousand.

First of all, the price reduction is due to the fact that in the beginning of 2016 offers on the market was significantly higher than a year ago, say the developers: high competition has prompted developers to cut prices or at least not to raise them. According to “Metrium Groups”, in February 2015 in the primary market for mass segment exhibited 27 projects, which corresponded to about 7.5 thousand apartments, in February of this year sales were 40 projects, or approximately 13.6 thousand apartments — almost twice last year’s volume.

“It so happened that now entered the market a huge number of projects that were developed the previous few years, and developers just can’t get to the market, — says sales Director of the group of companies “pioneer” Diana Nelidovskaya. — The current economic situation will force market participants to compete, and to agree, because to reduce the price is not beneficial to anyone because it’s bad for the economy.”

Apartments that are in a low stage of readiness really are cheaper than a year ago, confirmed a representative of the largest Russian developer, the company “Morton” Igor Ladycock. “Declared a very large number of objects, so in the initial stage, the developers compete on a price basis, he explains. — However, when it is ready, the house competition is shifting towards quality, so the objects in the advanced stage of construction are not cheaper than a year ago”.

To compare the sales of the beginning of the year with last year’s wrong, because in January-February 2015 the mortgage with state support have not earned, and Bank mortgage rates were high, says Ladichuk, therefore, the sale in the market then almost stopped.

More deals

Moscow Department of Rosreestr has not yet reported on the February transactions on the real estate market, but the developers themselves talk about the growth of sales in January-February by about 20-30% compared to the same period last year. “Sales for the first two months we grew by about 30% compared with the previous year, confirms marketing Director MR Group Eugene Starkov. In the beginning of the year there were rumors that the government would not renew the program of preferential mortgage, so those who doubted whether to buy an apartment, I decided to do it early in the year, fearing that later mortgage rates will rise”.

“In January-February of 2016, compared with January-February 2015 in the majority of our projects we closed in 1,5–2 times more deals, adds managing partner of “Metrium Groups” Maria Litinetskaya. — The main reason for this, of course, was the news about the possible termination of the program of subsidizing mortgage rates with March 1, 2016″.

“The political situation has stabilized, active military actions in Ukraine now are not, — explains the General Director of “NDV-real Estate” Alexander Khrustalev. Positive signals for the economy: all straight, all clear. So I think that the real estate market will grow.” “In the segment of affordable housing, the demand always remains at a good level — I agree Ladichuk from “Morton”. — If to speak about our company, we have a good pool of objects at different stages of readiness, so we can find an apartment under any buyer need, so in a bad situation we don’t find ourselves”.

February was very good because it absorbed part of the transactions of March, April and even may, fears of commercial Director FGC “Leader” Gregory Altukhov. “People were rushing to buy flats because I was afraid of cancellation of mortgage with state support, he says. But the program gesubsidieerde extended, so on the market, most likely, will decline. To predict volumes are now difficult.”

“February was very good, but I wouldn’t rejoice, — agrees the head of Analytics and consulting “best new Building” Sergey Lobzhanidze. To judge by two months of growth is impossible. Let’s wait six months, until June, and then we will draw conclusions about the situation on the market”.