15/ 05

The average cost per square meter on the Moscow Region primary real-estate market grew by an insignificant 0.5% by the close of April to reach 78 thousand rubles, according to analysts from 'MIEL'.

It should be noted that the cost of new-build real-estate differs in relation to the distance from Moscow. For example, in April one square meter of new-build real-estate 0.5 km from Moscow was worth 92.9 thousand rubles.

At a distance of 5-10 km from Moscow, the average cost of one square meter of new-build real-estate was 75.5 thousand rubles; whilst the price per square meter of an apartment in a new-build project located 10-20 km from Moscow is 68.2 thousand rubles; and at a distance of 20-30 km the average per square meter cost was 58.4 thousand.

"The average price of one square meter on the primary housing market of the Greater Moscow area (at a distance of up to 30 km from Moscow) in April was almost unchanged. Buyer activity remains at a high level nevertheless, which can largely be explained by current macro-economic factors and currency fluctuations. This pricing situation will, in all likelihood remain the same, provided there is no substantial change of macroeconomic indicators." stated Sophia Lebedeva, General Director of MIEL New Building.

According to experts, the prices of new-build real-estate in the Greater Moscow area will grow in cities near to large-scale reconstruction of roads. For example, the Greater Moscow area government has announced plans for the reconstruction of Oktyabrskiy Prospekt, the main highway connecting the capital with Lyubertsy. In the near future the rate of growth of prices in Lyubertsy should begin to grow, according to Alexandra Biryukova, head of the analytical centre of 'Domus Finance'. She predicts a 7-10% increase in prices in Lyubertsy.

Prices of new-build real-estate near Moscow may also grow along the Dmitrovskoye highway, added experts from 'Domus Finance'. This will be facilitated by the reconstruction of the Dmitrovskoye highway which is scheduled for completion in the autumn of 2014.

According to company data, over the past year alone prices in new-build real-estate developments along the Dmitrovskoye highway increased by 10-12%, while the average increase in other areas around Moscow did not exceed 6%. Analysts predict that there will be a rise of 5-7% in housing developments in this area by the end of this year.