Reasons for the sales boom
The number of advertisements for the sale of apartments on the Moscow real estate secondary market doubled from 2019 to 2021. Avito Real Estate told socialbites.ca that there were several reasons for the rushed demand at once. Among the main ones are the traditionally high liquidity of capital real estate, as well as low mortgage rates.
According to Sergey Khakhulin, head of secondary and suburban real estate of Avito Real Estate, about 43,000 advertisements for the sale of Moscow apartments on the secondary market were presented to users of the service. This is the absolute maximum for the capital region.
“Many property owners have taken advantage of this opportunity and have increased the comfort of their homes by selling old apartments in favor of more modern apartments in new buildings. The growing popularity of Avito in real estate placement is an important factor,” Khakhulin explained.
Situation in the Central Administrative District
Traditionally, the most profitable segment of the Moscow real estate secondary market is the Central Administrative District (TsAO). The average cost of an apartment in the center of the capital, put on sale in 2021, is 50 million rubles.
At the same time, experts noted that house prices more than doubled compared to 2019.
Avito.Real Estate
Over the past three years, the supply in the secondary market of Moscow housing has been evenly distributed among the administrative regions. However, the Central Administrative District still led in terms of the number of advertisements – it accounted for about 14% of the total number in the capital. Then come the South and Southeast (about 12% each) and the North (10%) of the capital.
At the same time, Khakhulin noted that the offer in the real estate market of the Central Administrative District is still limited.
Evaluation of other counties
After the Central Administrative District, in the ranking of the most expensive areas of the capital’s secondary real estate, there are the objects of the Western and North-West administrative districts (ZAO and SZAO). Here the average cost of housing in 2021 averages 21.4 million and 14 million rubles, respectively.
At the same time, Avito Nedvizhimost emphasized that housing prices in ZAO have increased by one and a half times in the last two years.
Avito.Real Estate
In the ranking of the most expensive apartments in the secondary real estate market of the capital, after CJSC and SZAO, the South-West Administrative District (13.8 million), the North-East Administrative Okrug (13.3 million), Novomoskovsky Administrative District (NovomAO – 13 million ) and the Southern Administrative District (12.7 million) million).
The most affordable apartments on the secondary housing market in Moscow in 2021 can be found in the Zelenograd and Southeast regions. Experts said that buyers here paid an average of 8.3 million and 8.6 million rubles, respectively, for housing.
The rise of the studios
In the Moscow secondary real estate market over the past two years, the largest share of supply was in two-room apartments – more than 30% in 2019 and 27-28% in 2020-21. Three-pointers sold also fell during this time, from 26% in 2019 to less than 20% in 2021. According to Avito Real Estate, the same trend was observed in the odnushki segment of the capital – their number in the secondary apartment decreased from 26% to 22% of the total number of apartments.
Avito.Real Estate
By contrast, the supply of Moscow studios has more than tripled in the last two years, from 7% in 2019 to 24% in 2021. And last year the demand for the purchase of such apartments was ready to explode – in 2021 it increased by more than 100% in most regions of Moscow.
Avito stated that the most actively sought studio apartments are CJSC (+220%), CAO (+172%) and ZelAO (+170%). In a conversation with socialbites.ca, Khakulin said that this trend is largely due to the hype in the Moscow real estate market during the coronavirus pandemic in 2020.
“Studios tend to be the most affordable alternative to one-bedroom options. For example, in Nekrasovka you can find apartments of 11-15 square meters for 2–2.5 million rubles,” he said.
However, affordable prices for Moscow studios can not be found in all administrative regions of the capital. So, according to Khakhulin, the cost of such apartments with an area of more than 50 square meters. m in the Kutuzovsky Prospekt area reaches 37 million rubles.
Avito.Real Estate
Avito Nedvizhimost noted that the largest number of metropolitan studios for sale in the secondary housing market in 2021 are in the Southeastern Administrative Region. There were 13,000 similar ads on the platform.
Since 2019, their number has increased sixfold, and the average cost of an object has increased by almost 30%, reaching 3.7 million rubles. Last year it was possible to buy studios only in the Zelenograd region (3.25 million) cheaper.
In turn, the most expensive studios were located in the Novomoskovsk Autonomous Okrug, where the cost of apartments reached 6.1 million rubles.
Source: Gazeta
Barbara Dickson is a seasoned writer for “Social Bites”. She keeps readers informed on the latest news and trends, providing in-depth coverage and analysis on a variety of topics.