Moscow is slowly slipping to the bottom lines in world rankingreflecting the rise in prices for premium housing. According to the results of the 3rd quarter of 2014, the Russian capital was given the 30th position in the rating, as a result of which it demonstrates negative growth dynamics for the year in the amount of 3.7%. St. Petersburg was placed even lower - by two lines - where the annual dynamics indicator was 8.7% with a minus sign.
Such information is provided in World Elite Real Estate Markets Index (Prime Global Cities Index) for the 3rd quarter of the year, prepared by Knight Frank. In total, the Index tracks price dynamics in the premium housing markets of thirty-three cities around the world.
According to the results of a recent study, Moscow passed 10 points in the Index over the year. According to the results of six months of 2014, it was in twenty-fourth place in this rating (with an increase of 0.9%), and St. Petersburg - in 22nd place (with an increase of 2.3%). Last year, the capital of Russia was ranked 20th at all.
In the quarter of 2013, it was among the nine cities in Europe - participants in the popular rating, moreover, it was in fourth position, slightly behind London, St. Petersburg and Monaco. The results of the third quarter of this year moved it to ninth place, St. Petersburg - to 11th (it ends the list of European cities in the Index).
According to the data of the premium real estate agency Contact Real Estate, in comparison with the third quarter of last year, the volume of supply in this segment in Moscow increased by 14.8% and more than 7% in relation to the previous quarter.
At the same time, the average cost of a “square” has now decreased compared to the summer period by 3% (amounting to $ 18,218), which is due to the fall in the ruble exchange rate. Experts say that this is not an indicator of a decline in the prices of elite housing, but rather just some correction of them, accompanied by a limited supply in this segment of the housing market. In 2015, according to Andrey Solovyov, director of the elite residential real estate department at Knight Frank, the capital of Russia and St. Petersburg will retain their own positions at the bottom lines of the rating under review.
Along with Russian cities, the rating of the price dynamics of elite housing is closed by Geneva with Singapore. In contrast, Jakarta, Los Angeles and Tel Aviv have the highest growth rates for premium housing.
On average, Knight frank reports that prices in the cities participating in the ranking have increased by 4 percent over the year. Compared to the 2nd quarter of this year, the price increase was about 0.2%.