Suburban Overview

In the last few years the real estate market in the Moscow region has changed greatly as far as the demand for high-end housing is concerned. Whereas three years ago a 1,000-square-meter mansion with designer fittings on a 1-hectare site on Rublyovo-Uspenskoye Shosse that sold for $8 million dollars was the Moscow region"s most expensive property, there are now several suburban residences which are going for $50 to $100 million dollars. The basic criteria for elite housing are as follows.

In the last few years the real estate market in the Moscow region has changed greatly as far as the demand for high-end housing is concerned. Whereas three years ago a 1,000-square-meter mansion with designer fittings on a 1-hectare site on Rublyovo-Uspenskoye Shosse that sold for $8 million dollars was the Moscow region"s most expensive property, there are now several suburban residences which are going for $50 to $100 million dollars. The basic criteria for elite housing are as follows.

1. Location

Rublyovo-Uspenskoye Shosse, the key locations being Razdory, Barvikha, Zhukovka, Gorki-2, Ni-kolina Gora, etc.;
Minsko-Mozhaiskoye Shosse, Peredelkino;
Skolkovskoye Shosse;
Kaluzhskoye Shosse, Arkhangelskoye;
the north and northwest of the Moscow Region, close to stretches of water.

Properties in this category are brand new cottage settlements with extensive facilities built to an eye-catching design, often by a renowned architect, in less well-known locations up to 30 kilometers from the Moscow Ring Road or MKAD to the west, southwest, northwest and north of the city.

2. Size

Upwards of 400 square meters and on average 700 to 1,000 square meters.

3. Site

Upwards of 2,000 square meters in size and on average 3,000 to 4,000 square meters.

4. Type of location

Forested area and/or proper landscape design.

5. High-level security, including security systems

6. Neighbors

All of the same socio-economic group.

7. Price

Upwards of $3 million dollars and on average $5 to 8 million dollars.
The total amount of new build in the Moscow region delivered in 2007 exceeded 7.5 million square meters, whereas in Moscow proper that figure stood at 4.8 million square meters. What"s more, a large part of that - almost 3.5 million square meters - was given over to private houses, i.e. cottages and townhouses.

Supply

• Novorizhskoye Shosse: more than 80 cottage settlements, over 4,000 cottages, around 2,500 of them intended for year-round living, and 1,000 townhouses.
• Dmitrovskoye Shosse: around 2,000 cottages and 800 townhouses.
• Kievskoye Shosse: 1,000 cottages and 200 townhouses. On Kievskoye Shosse up to the A107 - the second ring road around Moscow beyond the MKAD - there are currently 20 cottage settlements on sale, which are aimed at year-round occupancy, the furthest being located 35 kilometers from the MKAD. The bulk of supply is made up by cottages.
• Kaluzhskoye Shosse: 750 cottages and 200 townhouses. There are around 40 cottage settlements currently on sale along Kaluzhskoye Shosse. At seven of them land is for sale without a binding construction contact, at four of them townhouses are on offer and apartments are only available at one of them. Supply consists mostly of the traditional form for suburban development - cottages - which currently number around 750. Interestingly, the majority, over 500 houses, are located in developments located more than 40 kilometers from the MKAD and are marketed as dachas.
• Rublyovo-Uspenskoye Shosse: 300 cottages and 500 townhouses.
• Minsko-Mozhaiskoye Shosse 300 cottages and 300 townhouses.
• Leningradskoye Shosse: 300 cottages and 400 townhouses.
• Pyatnitskoye Shosse: 400 cottages and 100 townhouses.
• Volokolamskoye Shosse: 200 cottages and 200 townhouses.

Prices

• Rublyovo-Uspenskoye Shosse: the price of a cottage on the primary market here ranges from $1 million at the Yevropa to $30 million at the Chateau Phoenix cottage settlements, but up to $100 million for a house (such as at the Yevraziya settlement) on the second-hand market. Town houses cost from $500,000 (at Ilinsky Kvartal) to $3.5 million at the Semenkovo settlement.
• Prices on the Kaluzhskoye Shosse for projects up to 30 kilometers from the MKAD aimed at year-round living are in the $500,000 to $600,000 range for a cottage and $350,000 to $1.5 million for a townhouse. Supply is concentrated in the $1 to 2 million range for a cottage and $500,000 to $800,000 for a townhouse.
• In the Minsko-Mozhaiskoye Shosse area, cottages intended for year-round living range from $520,000 at the Doroga Domoi settlement to $11 million at Stolnoye.
• The prices of cottages for year-round living on the Kievskoye Shosse are concentrated in the $1 to 2 million range.

The features of an average cottage:

• 700 square meters in size, turnkey development;
• 3,000 to 3,500-square-meter site in an area of coniferous forest;
• Located in a guarded cottage settlement;

As can be seen pie-chart below, Kievskoye Shosse is greatly strengthening its position as third in the ranking of suburban areas after Novorizhskoye Shosse and Dmitrovskoye Shosse in terms of the amount of supply.

The delivery of a new section up to Vnukovo with lighting and the continuing reconstruction of the rest of Kievskoye Shosse, which is planned to be continued as far as the A107 in the longer term, have noticeably raised interest in this area on the part of both buyers and developers. Kievskoye Shosse currently has lighting, a high quality surface and is free of traffic lights as far as the exit to Krekshino, 21 kilometers from the MKAD, with direct access to the center of Moscow via Leninsky Prospekt or Prospekt Vernadskogo and Komsomolsky Prospect.

Kievskoye Shosse has great potential for development with its good transport access, bettered only by Novorizhkoye Shosse, and thanks to its pleasant, undeveloped state with little industry, a large quantity of free, unclaimed land.

We will see a noticeable inc-rease in the quantity of projects on Kievskoye Shosse and large growth in supply. Currently more than ten suburban housing complexes in the area up to the A107, which could come onto the market sometime between now and 2010, are known to be at the planning stage.

Back to the news list	[11.06.2008]