Moscow is slowly slipping into the lowest ranks in the world ranking, reflecting rising housing prices of premium class. According to the results of the 3rd quarter of 2014, the 30th position of the rating was given to the Russian capital, as a result of which it demonstrates negative growth dynamics for the year in the amount of 3.7%. Peter was even lower — on two lines — where the annual dynamics indicator was 8.7% with a minus sign.
Such information is provided in Elite Class World Real Estate Index (Prime Global Cities Index) for the 3rd quarter of the year prepared by Knight Frank. In total, the Index monitors the price dynamics in premium housing markets of thirty-three cities in the world.
According to the latest research, over the year Moscow “passed” 10 points in the Index. According to the results of the six months of 2014, she 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 occupied the 20th line altogether.
In the quarter of 2013, she was among the nine cities in Europe - participants in the popular rating, and she was in fourth place, slightly inferior to London, St. Petersburg and Monaco. The results of the third quarter of this year moved her to ninth place, Peter - 11 (he completes the list of European cities in the Index).
According to the premium real estate agency Contact Real Estate, in comparison with the third quarter of last year, the supply volume in this segment in Moscow increased by 14.8% and by more than 7% compared to the previous quarter.
At the same time, the average cost of a “square” has now decreased by 3% compared to the summer period (amounting to $ 18,218), which is due to a drop 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 adjustment, accompanied by a limited supply in this segment of the housing market. In 2015, according to Andrei 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 of the ranking.
Along with Russian cities, Geneva and Singapore close the ranking of the price dynamics of luxury housing. In contrast, Jakarta, Los Angeles and Tel Aviv have the highest growth rates for premium housing.
Speaking on average, Knight frank reports that prices in the cities participating in the rating for the year increased by 4 percent. Compared with the 2nd quarter of this year, the price increase amounted to about 0.2%.
