The apartment for half the price: what discounts will be in the “black Friday” of real estate

What are the discounts

In the night of Friday, August 19, in the Moscow region started a big sale of real estate. The so-called black Friday, or Black Friday Real Estate, takes place this year for the second time and brings together 70 objects from 49 real estate companies. Like last year, it is organised by the Association of real estate professionals REPA and communication Agency “Media-Storm”.

The event will start at midnight from Thursday to Friday and will end at midnight of Sunday to Monday. At this time on the website will be presented to several thousand lots. And unlike last year, when the discounted only sold apartments, apartments, lofts, cottages and land, this year you can buy will also be Parking spaces and commercial premises. We are talking only about new buildings: will sell lots in the project at the level of the pit, and in ready homes.

This year the organizers promise discounts of up to 50% on ready-made housing. Minimum discount will start from 2%, and to average around 10%. Last year, average discounts also varied in the area of 10-15%, but the maximum reached only 30%.

The action involves only those developers who implement projects in accordance with 214-FZ”On participation in shared construction”). When there is a registration fee, which varies in the region of 300-400 thousand. “last year, three days were sold 196 lots, later about three hundred, — says the head of the Association REPA Yulia Solodovnikova. — The amount of transactions amounted to 1.5 billion rubles”. During last year’s “black Friday” was sold to a quarter of the amount offered for sale lots. This is half of the average monthly number of trades (according rosreestra Moscow, on a monthly basis in the capital in 2015 was about 1000 contracts equity).

Despite the increase in the number of objects participating in the promotion (in the past year, 47 companies were selling discounted items in 67 facilities), the volume of the proposed space decreased slightly in the past year on “black Friday” was sold 153 thousand square meters, this 140,2 thousand sq. m.

Among the new participants — the company “Khimki Group” Alisher Usmanov. “Participation in the project “Black Friday the real estate market” is not the last hope of the developers, because it involves quite successful projects with a good dynamics of sales, emphasizes partner “Khimki Groups” Dmitry Kurowski. For us, black Friday is a reason to try a new marketing tool that last year we may have underestimated, and also cover a new segment of potential buyers who right now are in search of real estate.”

In the PSN group was pleased with last year’s result, but this time decided not to put the country estate and the apartments in their projects of comfort-class — LCD “Home” and “Environment”. The most active participant this time will be “don-Stroy invest”. The total amount of discounts that will give all participants a “black Friday” will exceed 2.5 billion rubles, while the share of “don-Stroy” will have 822 million rubles., promise in the company.

Among the famous developers who also promise to exhibit their will “Plane of development”, “Lider invest” (enters in AFK “System” Vladimir Yevtushenkov) and “Barkli” Leonid Kazintsa.

Those who refused to dumping

A number of developers have decided not to participate in the promotion. “In our projects and high dynamics of sales, and to provide such a large discount in the “black Friday” we do not see the point,” explained marketing Director MR Group Eugene Starkov.

Will not hold sales and other major developers: PIK, LSR “Morton” and “Etalon”. The position of market leaders expressed commercial Director of “LSR Group” Yuri Ilyin: “Group LSR” against dumping in the market of residential real estate. According to him, on the apartment companies now there is a demand, while buyers traditionally offered discounts. “To increase them for one event do not see sense,” he added.

Another interviewee , representing a large capital developer housing, was more radical. According to him, the companies that participate in “Black Friday real estate market” have two goals: to advertise your property or try to raise the sale of objects that are not in demand.

“We believe that today the tool of discounting has outlived its usefulness from the point of view of increase of sales, — says PR Director of Urban Group Yana Maximova. For ourselves, we decided that to effectively fight for the client by using the quality of the project and not happy.

How the action affects the market

“10% discount today located within the normal market range, notes the head of Department of Analytics of “best-Novostroy” Sergey Lobzhanidze. — No wonder developers are throwing this event in the summer, when sales traditionally drop is exactly to maintain sales in off season they expect”.

On the primary real estate market today is indeed observed seasonal summer lull, confirms the managing partner of “Metrium Groups” Maria Litinetskaya.

Despite this, the demand is still significantly higher than last year: in comparison with July 2015 to July 2016 was signed on 72,53% more trades, within the building there is information about 2807 concluded contracts of share participation. This was the highest sales figure since the beginning of the year, even considering the February an excessive demand caused by the possible completion of the program of subsidizing mortgage rates. However, compared to the previous month, the increase was only 2,56%. However, be aware that the registration of the contracts within the building takes place about a month and a half after the transaction.

“Interestingly, increased conversion of demands into the deal, — said Litinetskaya. Thanks to the increase of conversion the summer lull has not become critical for developers, since the work with each client become more efficient.”

In the “Metrium Groups” have recorded growth in the number of projects where discounts are available. In this case we are talking primarily about the mass segment, while the business and elite class discounts are provided mostly on an individual basis and their size is discussed with a particular customer. “According to our data, today discounts available in 91% of projects: a maximum discount of 15%, the average level of 6-7 per cent,” says managing partner of “Metrium Groups”. A year ago the preferences were offered in 86% of the housing complexes, the maximum level of discount was equal to 15%, the average discount ranged between 4-5%”.

A substantial share of the projects participating in “black Friday”, located in the suburbs, said the head of “IRN-Consulting Tatyana Kalyuzhnova. According to Rosstat, in the first half of the volume of contracts equity decreased by 5%, so the suburban developers are more interested in maintaining their sales, she said. In addition, the offer in the suburbs is significantly higher than in Moscow. If you region up for sale is a 7.5 million sq m of new housing, the capital, according to the “IRN-Consulting between TTR to MKAD (about 90% of the proposals) is about 1.3 mln sq. m.

“A significant impact on the market say no because it is a short action and take part in it, not all representatives of the market, — is assured the General Director of company “MIEL” Natalia Shatalina. — Rather, “black Friday” — is a good opportunity for developers to further Express themselves, to exhibit some pool of objects at interesting prices.”

What are the risks

All developers can be divided into four categories, builds a classification of Tatiana Kalyuzhnova. The first is those who do not participate in “black Friday.” Developers, members of the second group use the event as a marketing tool and a way to once again to advertise the project. Such, for example, the company “Lider invest”, offering discounts of 10%. “The third group includes “donstroy-invest,” which so often provides big discounts on apartments in several of its projects, especially in the process of negotiations, — said the expert. Now the company decided to stir interest in their projects.” And finally, the fourth group is those whose projects for various reasons, are not sold or have problems with the documents.

Last year the event caused a negative reaction of the authorities. So, Deputy Chairman of Moscow region government Herman Alenushkina announced its intention to test developers, who sell flats with big discount. “It’s not a threat, but the intention is to protect customers, to prevent a large number of problem objects. Information will be sent to the Prosecutor’s office, the tax authorities to identify possible consequences. Because we reasonably suspect that those companies who are selling apartments at a discount in the tens of percent, just want to raise funds here and now. On the completion of construction in such cases, of course, the speech can not go”, — quoted the press service official said.

This time, the press service Alenushkina declined to comment. In turn, the head of the Moscow construction complex, the Deputy mayor of Moscow Marat Khusnullin through his press service reported that “the increase in the degree of protection of the rights of citizens — participants of share construction is one of the prerogatives of the work of the Moscow construction complex. It is including through inspections by specialists of Moskomstroyinvest with the participation of law enforcement agencies and prosecutors. In 2016, the volume of checks has increased significantly: they spent ten times more compared to the same period in 2015, 17% increase in the number of planned exit checks”.