This price segment is catching up with the more democratic comfort class both in terms of exposure and demand
According to the results of the quarter, Yuzhny JSC became the leader in terms of the supply of new business-class buildings among the capital districts
The exposition of the capital’s new business-class buildings has grown by 30% over the year, according to a review provided to the editorial board by analysts at the Whitewill real estate agency. According to their data, in the first quarter of 2024, the supply in this price segment amounted to 19.5 thousand apartments, and in the same period of 2023 – 15 thousand objects.
Analysts of the Best-Novostroy company provide similar figures. According to their data, in April, the exposition in business class increased by 5% – to about 19 thousand objects, while in comfort class it decreased by the same 5% (to 20.4 thousand lots).
The real estate company Metrium also notes the growth of the business class exposition in Moscow and predicts a further increase in the indicator. According to them, in total in 2024, developers plan to put into operation 182 buildings in 55 residential and apartment complexes of business class. In this case, the pace of commissioning will increase by 22.1% relative to 2023, analysts specify.
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Whitewill analysts point out that the volume of business-class housing supply has increased over the past year, largely due to the appearance of several large projects that have received construction permits. The leader in terms of the supply of new business-class buildings among the capital districts at the end of the quarter was the Southern JSC, where 4.4 thousand lots are on display. The minimum supply of residential complexes of this price segment is marked in the Central JSC — 808 apartments.
Level Group analysts also note the leadership of the Southern Administrative District both in terms of supply and demand for business-class housing — primarily due to the implementation of a large-scale ZILA territory development project. CJSC, where the development of the former Ochakovo industrial zone is underway, was also among the leaders. “Danilovsky, Ramenki, Ochakovo-Matveevsky, Khoroshevo-Mnevniki can be distinguished from the districts in the demand structure,” says Alexandra Mamokhina, Director of Strategic Marketing and Product at Level Group. — There have been no significant changes in the buyer’s portrait over the year. More than 70% of buyers are residents of Moscow, slightly less than 20% are residents of the Moscow region, the share of regional buyers fluctuates around 10%.” The expert also notes an increase in the number of transactions with 100% payment and installments in the business class segment.
Prices are rising, the area of apartments is shrinking
According to Whitewill statistics, the average area of apartments in the offer of new business class buildings at the end of the quarter was 62 sq. m, the indicator did not change relative to the end of 2023. “Nevertheless, the trend towards a reduction in the average area can be traced in the longer term — a year earlier the indicator was at the level of 68 sq. m, which is 10% higher than current values,” the review clarifies. Best-New Building notes that this reduction corresponds to the general trend: so, at the beginning of 2019, the average area of apartments in new buildings in Moscow was 71.1 sq. m, at the beginning of 2024 – 58.8 sq. m.
“The shift in demand to the segment of small—sized apartments is a trend of the last few years in the market of new buildings,— says Alexandra Mamokhina. — In the structure of demand by area, the share of ranges of 20-25 square meters has increased significantly over the past year. and 30-35 sq . m . In general, on an area of up to 50 sq . m . m accounted for 61% of transactions in 2023.”
The average cost of a “square” in new business class buildings increased by 1% in the quarter and reached 471 thousand rubles, according to a Whitewill study: in annual terms, the price per square meter increased by 6%. The price increase in the segment is also confirmed by PIONEER — according to their data, the indicator increased by 3% in the quarter against the background of active demand. “When comparing transaction data for the first quarters of 2024 and 2023, we can see a decrease in demand only in the comfort class,” says Ekaterina Petrova, Director of Analytics and marketing Concepts at PIONEER. “In all other classes, the sales volume showed growth.” The expert adds that the share of the offer with finished finishes in new business class buildings has increased by 2 percentage points in two years, to 11%, with pre-finishing white box — decreased by 5 percentage points, to 28%, the share of the offer without finishing increased by 3 percentage points, to 61%.
Experts interviewed by the editorial board note that business class is catching up with the more democratic comfort class price segment in Moscow in terms of demand. According to Est-a-Tet statistics, in the first quarter of 2024, for the first time there were more business class transactions than comfort class: the shares in demand amounted to 49% and 39%, respectively. Among the reasons, market participants name promotions and special offers from developers, which are more widespread in the business class segment. NF Dom also points out that the sharp increase in demand in the segment is associated with the demand for a combined mortgage with a limit of up to 30 million rubles, which will end in the summer along with a state-supported mortgage program.
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