 
Usadba Moscow Residences CEO Evgeny Ivanov comments on the situation with high-priced listings in Russia.
Usadba Moscow Residences CEO Evgeny Ivanov comments on the situation with high-priced listings in Russia.
The most expensive property that’s on the market right now is Eurasia estate, which is a $100M turnkey property. For the most part, the price of this property is determined by its additional buildings in terms of their number, area, and quality while normally the manor house itself acts as the major pricing factor. Regularly, the way you get customers for such offers is not by advertising them. As a rule, such clients come to us as referrals. Our company has a specific controlled access website PrivatePalace.ru that holds all the information on the most expensive out-of-town properties of Podmoskovye area. Only our VIP-clients can be authorized to access it. Speaking of rising prices in the luxury segment, I don’t think it’s likely to get as far as, say, a billion dollars for a single property here in Russia. I believe the top price as of today is $100M. Normally, for such properties there are several price determinants. The major factor is location, which by the way determines the price of the land itself. The cost of a 1 076,39 sq. ft (= 100 sq. m) land plot at Roublyovo-Uspenskoye Highway is now over $200,000. Besides that, the architectural project plays huge part in pricing, and so do the size of the manor house, its siding, and especially its interior design and its finishing. In this case, the interior designer’s name is even more significant than the architect’s name. Such properties can be offered both furnished, in which case the furniture is part of the designer’s project, or unfurnished. Sometimes, however, it’s impossible to build an out-of-town property that is sure to sell at the price of $10M and higher, despite the fact that you have taken into consideration all the price determinants. To have that happen, each such project has to be unique and have its own spice. Usually, you don’t get too many customers for such offers. Even considering the fact that in Russia there’s believed to be about 100,000 millionaires today you can get only about 20 customers (including corporate clients) per property. And that applies to the whole country. The properties priced $25M and higher are not considered luxurious or works of art, because they are highly functional. They are true Quality Homes. A work of art cannot be used for residential purposes. It does accentuate the high status of the owner, but it can’t be actually used”. *Podmoskovye area = the nearest out-of-town regions of Moscow, the area enclosed within an 18,64-mi radius of Moscow.
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“Over the past several years the Podmoskovye* real estate market has changed greatly due to the rising demand for high-priced properties. Take this for an example: nowadays, there is quite a number of out-of-town properties rated $50M to $100M, as compared to, say, 3 years ago, when the $8M property sold by Usadba Moscow Residences was the most expensive real estate object of that period of time, on this market. I’m talking about the mansion comprising over 10 763,91 sq. ft with designer finishing that’s situated at Roublyovo-Uspenskoye Highway on a plot with total land area 2,47 acres.
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