The Russian economy was among those who got strongly affected by the 2008-09 economic crisis, as oil prices plummeted and foreign credits that Russian banks and firms relied on dried up.
Today the situation has changed. Russia’s economy shows solid growth, but the inherent vulnerability related to an over-dependence on natural resources combined with low investment rates continue to stifle growth.
Aged 30 and older, [Russian investors] buy trendy apartments and villas with sophisticated design in privileged locations
There has been a strict increase of the Luxury Real Estate market in Moscow, new projects that attracted direct attention from buyers appeared, the development of Housing Complexes was on schedule, and sales in new projects were made according to the 214 Federal Law.
Secondary market growth seems to go on smoothly, and as for the primary market, it is believed to develop dynamically. The cheapest supply of newly-built projects leave the market very quickly and average prices will rise.
The most expensive district as of today is Patriarshiye Prudy. The average flat price on primary market there goes beyond $10 million, with an average square meter at $34,071. The Yakimanka district ranks second with an average flat price at $8.7 million.
Moscow’s luxury Real Estate market change of the average sq m price in dynamics
What about the luxury Real Estate buyer profile in Russia?
For Russians, luxury Real Estate symbolizes measure of wealth more than heritage. The “New Rich” players are obsessed with the status of prestige and a substantial part of that concept is based on appearance. Obviously, they invest in ambitious projects and need to have an “emotional connection” with properties. Aged 30 and older, they buy trendy apartments and villas with sophisticated design in privileged locations and fashionable neighbourhoods.
