Unlike Moscow mass housing developers, developers of luxury projects has managed to maintain high consumer interest: a potential audience of expensive real estate is much more resilient to the crisis. Against this background, the consultants are waiting for higher prices in these new buildings at 5-7%.The cost of real estate in Moscow by the end of 2020, to grow by 5-7%, predicted in the study Knight Frank. The consultants add that now this indicator is an average of 850 thousand rubles. per 1 sq. m. Moscow could become one of the few world capitals where there will be a price increase. Earlier, analysts of Knight Frank has revised its forecast for foreign markets. If at the beginning of the year expected mostly moderate growth in prices, now, the consultants suggest that to avoid the end of 2020 reduce the cost of luxury housing developers will also succeed in Vienna, Shanghai, Monaco and Lisbon. Falling prices for elite new buildings of up to 5% will go to Berlin, Cape town, Geneva, London, Los Angeles, Madrid, Melbourne, Miami, new York, Paris and Sydney. More than 5% may be cheaper expensive real estate in Buenos Aires, Hong Kong, Mumbai, Singapore and Vancouver.made in April 2020, the average budget of purchase of elite housing in Moscow, according SavillsУправляющий Director of Moscow Sotheby’s International Realty Irina Mosheva also predicts reduction of prices for elite real estate in Europe. So, in London, it is estimated that the decline in prices should be 2-3%. “But in 2021, the loss will be recouped and prices will grow by 3-6%,” she said. This thesis coincides with the evaluation at Knight Frank: consultants predict that more than 5% luxury housing next year will rise in price in London and Lisbon, while in Hong Kong and Singapore will continue the downward trend. According to the forecasts of MS Koshevoy in turn, in Asian markets drop this year may reach 10%.Expert Prian.ru Philip Berezin indicates that developers in Spain, Turkey, UAE and Bulgaria began to make a buyer special offers, but they are not associated with a direct reduction of prices, but mainly with special conditions, for example, by installments or reducing the size of the average contribution. He expects that in the next few months the price of housing abroad will reduce, but the process will be uneven.The Director of the Department of urban real estate at Knight Frank Andrey Solovyov specifies that in Moscow the positive Outlook remains due to the fact that the epidemiological situation develops in the favorable scenario: despite the fact that the number of transactions decreased markedly in the period of self-isolation, has developed in the market pent-up demand, which will be implemented in June. The expert adds that in the Central part of the city there is a shortage of supply. “Against the backdrop of the declining value of the rouble prices raised developers implementing the projects in high degree of readiness”,— says Mr. Solovyev. He adds that in the future average price will increase at the expense of these projects, while objects at the initial stage of implementation will not go up.The Chairman of the Board of Directors of Kalinka Group Ekaterina Rumyantseva believes that the price will review or has already reviewed the majority of developers: some have raised prices by 7-10% in March due to the fall of the ruble, others will be forced to do it. “In the luxury segment a large amount of materials and equipment purchased in foreign currency,” she explains. Thus the prerequisites for increasing the number of transactions, according to Ms. Rumyantseva, not now.Projections consultants for the segment of expensive housing in Russia is much more optimistic than the mass, where CYANOGEN analysts previously predicted a decline in prices by 8-10%. Luxury real estate will suffer much less because of the high financial stability of the target audience, explains the Director of the office of real estate “Metrium Premium” Anna Radzhabova. Ekaterina Rumyantseva agrees that mass housing is less sustainable in a crisis. But, she said, developers of projects for the construction of mass housing should not complain of demand: potential buyers can get a preferential mortgage rate of 6.5%.Alexandra Mertsalova
