Irina DOBROKHOTOVA. What does the real estate market offer?

Irina DOBROKHOTOVA

Chairman of the Board of Directors of BEST-Novostroy

The renovation program will make up for the shortage of new housing in some areas of Moscow

The capital’s housing renovation program announced in the spring of 2017 is designed to improve the quality of housing for many Muscovites. The pilot sites where the key urban planning principles for renewal of outdated housing stock included 5 Moscow districts.

Each of these district has its own characteristics, but most of the existing housing stock consists of apartment buildings dating from the 1960s-1980s. Many residents would like to improve their living conditions within their own district or even neighborhood. After all, people often are tied to their present address, the schools and kindergartens where the children go are close to where their parents live.

What does the residential real estate market have to offer to potential buyers in startup sites in these districts? It must be kept in mind that the renovation program includes a wave of resettlement that will take place over several years, but residents in five-storey apartment buildings slated for demolition need new housing now.

Of all the areas where obsolete housing stock will be updated, the most active construction of new housing today is going on in Khoroshevo-Mnyovniki District. According to the bnMAP.pro system, apartments and suites in 12 residential complexes with a total projected floor space of 2 million sq. m are currently being offered for sale here. The bulk of housing belongs to business class, and the planned commissioning date of the buildings under construction is by 2021. The current proposal includes apartments and suites at prices from 130,000 to 380,000 rubles per sq. meter.

Four residential complexes with total projected floor space of 205,000 sq. meters, which have either been commissioned or will be commissioned in early 2018, are for sale in Kuzminki, Tsaritsyno and Golovinsky districts, which significantly reduces the choice of apartments for potential buyers. Prices of the offer range from 140,000 to 290,000 rubles per sq. meter As of January 2018, there were no offers on the primary housing market along Vernadsky Avenue.

Thus, the renovation program proposed by the Moscow City Government will improve the living conditions not only of owners whose homes have been included in the list of buildings for demolition, but also those who live in these districts in buildings of other series and want to improve their living conditions with housing that will be allocated for open/commercial sale during the renovation program.