Uncertainty: Moscow elite residential real estate
The luxury real estate market in Moscow, and the Moscow real estate market in General, depends very much on the price of oil. If oil continues to fluctuate in the range of 30-40 dollars/barrel, you can forget about the increase in prices for luxury real estate. Against the background of uncertainty with energy prices, many buyers of luxury real estate in Moscow for the time of quarantine refused to view and slowed down transactions, which led to a decrease in sales volumes by 40-60%. The acquisition by the country's largest Bank, Sberbank, of 50% in two projects of the elite developer Vesper by some experts is considered rather as negative news, indicating the company's inability to service its obligations, and in particular, the destruction of the deal for the sale of the hotel part of the luxury Fairmont project due to the pandemic.
The events taking place in the Russian economy, the expectations of a wave of local company bankruptcies and a recession will certainly have an impact on the market of elite urban real estate, introducing elements of doubt into the minds of potential buyers and forcing them to think about the need to make expensive purchases during a period of instability. However, most experts in the elite market believe that prices have a high growth potential and can add 5-6%. Some experts expect price stagnation and a gradual increase in discounts to the prices of luxury housing exposure to the level of 10% in the short term (until the end of 2020).