News from Moscow Real Estate

Real estate prices surge in Moscow

The cost of apartments in Moscow is on the rise again. The latest surge comes after 2007 saw prices flatten out somewhat after the record prices reached in 2006.

Moscow’s real estate prices appear to be on the rise once again - with some estimates as high as 10% over the first two months of 2008. And some reports put the average cost per square metre of housing in the Russian capital at almost $4,800.

Economy, business, and high-end real estate are all exposed to the trend as more people look to buy into property, according to Ekaterina Thain, residential department director of Knight Frank.

“There is still a huge imbalance between the demand and supply and the supply is very limited in the centre of Moscow, particularly for newly built houses. The stock market is not doing very well at the moment so lots of people are trying to move their money from stock and try to invest in properties. But last year most purchases were made for personal use,” Thain said.

Some people may be rushing to buy while large loan-to-value mortgages are still available. On the other hand, only about 10% of apartments purchased in Russia are bought with mortgages.

Real estate is an attractive investment opportunity for many Russians averse to putting their money in other places.

CIS Development Director of Swiss Realty Group, Ilya Shershnev, has evidence that most apartments in business or upper-class buildings are purchased by the same people.

“They invest money in real estate and they purchase a flat not for themselves or their children - they buy 10, 15, 20 flats. It’s like an investment for them. So that makes a great problem for the market. Real estate taxes are still very low. If the government starts taking taxes from the real prices of real estate, people would not be able to afford those taxes,” Shershnev said.

Experts differ on their predictions of how the market will perform this year.

Some expect prices to go on rising, while others see the market stabilising.

Whatever happens to prices, the desire of people to purchase flats and establish themselves as property owners looks set to continue.

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Siberian eco tower

Foster + Partners have clearly been busy on the large scale eco front with another offering in the Russian city of Khanty Mansyisk. This 280 metre tall tower is built like a cut diamond to maximise daylight through the winter months by the refraction of light. Of the project, the architecture firm says, 'this mixed-use scheme will create an elegant and crystalline landmark, providing crucial new amenities for its citizens — a place for living, working, and leisure, sheltered from the harsh Siberian climate'. [see another Foster + Partners design]

Artificial Russia

What is it with these big fake islands that look like things from the air? We've had palm trees, a map of the world, and now an island that looks like Russia! Particularly annoying is that these edifices are only appreciated from above, and maybe in the sales pitch, but certainly not as you approach. This time a very accomplished Dutch Architect, Erick van Egeraat, is the designer and one wonders how he became involved in this seemingly unoriginal and ridiculously opulent gesture. Anyway, it’s called Federation Island and is a 330ha artificial archipelago in the shape of Russia, to be built in the Black Sea near Sochi and completed in time for the 2014 Winter Olympics. Apparently Vladimir Putin inquired about technical details and construction time. Erik van Egeraat assured him that the Dutch, more than anyone else, knew how to reclaim land from the sea. The question is why?

Люблю тебя, Петра творение!

Один из самых красивых городов мира, заложенный Петром Первым, находящимся под впечатлением своих зарубежных поездок по северной Европе.
Впитав в себя многое из скандинавской архитектуры, он, в тоже время, создал особый облик города у холодного северного моря. Много лет назад, когда я в первый раз приехал в Питер, он произвел на меня очень тяжелое впечатление. Была поздняя осень, холодно и сыро на дворе и весь город показался мне таким же мрачным, неуютным и каким-то недоустроенным, недопроектированным. Тогда я еще находился под впечатлением новой московской архитектуры ( Новый Арбат, Ленинский проспект и проспект Вернадского) и вся старая архитектура, по моему разумению, подлежала забвению. Через 6 месяцев, уже в погожий летний месяц состоялась моя настоящая встреча с Питером. Именно та, которая открыла мне его настоящую красоту<

Новые интернет ресурсы на службе покупателей недвижимости

Introducing Virtual City -

More Website Technology to

Help Sell Real Estate?

Written by: Joshua Dorkin

Thanks to the MapleLeaf 2.0 blog, I learned about a cool new site in Toronto called Virtual City. Basically a web 2.0 (I hat that term) mashup, the site uses Google Maps and some cool Ajax coding to let you take a tour of Toronto visually. Similar to Amazon’s A9Search, it looks like these guys mean business!

You can stroll down the street and look at photos corresponding to where the little magnifying glass is on the map. I was totally wowed by the site, and think that there has to be implications for both small business and for realtors. What if while scrolling down the street (virtually, of course), you could see icons corresponding to each business. Local businesses can purchase ad space which entitles not only contact info, descriptions, web URLs, but also a virtual tour of the business. What if you could do a walkthrough the business as well . . . now, apply the same thing to properties for sale and you’re looking at something really powerful for sellers, realtors, etc.!

I think the possibilities are endless here and I hope to see the technology developed further so these advances come to fruition!