The capital city of Russia as well as its business centre, Moscow is home to World Heritage Sites such as Red Square and the Kremlin. It is also one of the world’s greenest capital cities and has a rich performing arts heritage, epitomised by the Bolshoi Theatre and Tchaikovsky Concert Hall.
The 2018 World Cup, which attracted three million sports fans to Russia, was a huge boost to the economy. Visitors spent $1.5 billion during the tournament, while infrastructure designed to improve transport and connectivity in the city of Moscow is estimated to have cost around 302 billion RUB ($4.6 billion).
Moscow’s Government is moving forward with an ambitious 15-year renovation programme. This includes the resettlement and demolition of a dilapidated housing stock which will create favourable living conditions and renew the urban environment.
The renovation programme includes the demolition of 5,177 buildings (around 350,000 apartments) in which more than one million people currently live. According to our estimates, the construction potential is around 30-50 million sq m.
The large volume of new supply will increase the level of competition in the newbuild market. However, this impact has yet to come to fruition – the project is still at very early stage with the vast majority of sites currently being master planned. As at the end of 2018 there were only around 100 buildings under construction.
Nevertheless, the housing market in Moscow is already in recovery following challenging economic conditions over the past decade. The latest numbers show positive house price growth of 8.9%, with increase in demand driven by falling nemployment, which is now very low at 1.4%, and advantageous loan conditions. However, compared with other global cities, mortgage interest rates remain high.
The final impact of Moscow’s ambitious house-building project remains to be seen, but no doubt it will be significant and transformational for those looking to work, live and invest in the city.
What you can buy in Moscow: Metropolia
A collection of seven skyscrapers, each inspired and named after a global metropolis, this development is set to represent some of the best examples of urban environments in the world. On a Tuesday, you are in Paris enjoying a coffee with a croissant at a street café. On a Friday, you go clubbing in Berlin, and you may spend Sunday in Rome.
|Address: Yuzhnoportovy district, Volgogradsky prospect, ow. 32/3|
|Status: Under construction, completion Q3 2021|
|Number of units: 1,916|
|Average price: $2,350 psf|
|Developer: MR Group|
|Architect: Architectural bureau SPEECH, Landscaping - Russian bureau UTRO|
This ‘city of cities’ is centrally located within the Moscow’s Third Ring Road, with a tenminute journey to the city centre. The complex will be secure, with fingerprint access for residents and guests. The landscaping will provide sports infrastructure, modern children's playgrounds and promenades. The development will also have its own kindergarten and school. A two-level underground parking with direct access from residential floors will be provided.