Elite secondary market real estate has increased by 19% over the year

Analysts from the Kalinka Ecosystem have summarized the results of the 1st quarter of 2024 for the secondary real estate market in Moscow. According to DomKlik service, the overall level of supply in the capital's secondary market has grown compared to the end of the last year: the number of listings increased by 9% in the 1st quarter, reaching 23,743 lots, even though the annual figure decreased by 14%. Experts believe the supply growth for the quarter can be attributed to the demand correction following its active increase in the 3-4 quarters of 2023.

In the elite segment, the volume of quality supply on the secondary market continues to decrease: as a result of the 1st quarter, as well as the results of 2023, 722 lots were showcased, covering 131.9 thousand sq.m, which is 18% lower than the same period of the previous year.

The emerging deficit of quality supply on the secondary market of elite real estate in Moscow led to the fact that by the end of the 1st quarter of 2024, the average weighted price of the supply was 1,379 thousand rubles / sq.m (the quarterly growth was 7%). The indicator dynamics compared to the same period of the last year amounted to +19%, partly due to the effect of currency difference (during the year, the average rate increased by 20%, whereas about 22% of the lots on the market are showcased in foreign currency).

As for the demand in the secondary housing market across Moscow, according to Rosreestr, 30.2 thousand property rights transfers were registered in the 1st quarter of 2024, which is traditionally 36% lower than the figure for the 4th quarter of 2023 and 9% lower than the number of rights transfers in the 1st quarter of 2023. The decrease in demand on the mass market is partly related to the reduction in the share of mortgage transactions against the backdrop of the Central Bank raising the key rate over the year from 7.5% in March 2023 to 16% since December 2023.

According to Kalinka Ecosystem, demand in the secondary high-budget real estate market in the 1st quarter of 2024 showed a decrease of 5% compared to the same period last year amid a reduction in supply. The highest demand in square meters for secondary elite housing for the quarter was recorded in the Khamovniki district, which constituted 21% (+6 p.p. to 1 quarter of 2023). The second-place leader of the previous quarter is the Presnensky district, its share in demand was 14%, which is equivalent to the same period last year. The third place is taken by the Ramenki district with an 11% share in demand (-4 p.p. to the 1st quarter of 2023).

Alexey Chumalov, the General Director of the Kalinka Ecosystem, shared his views on the current situation in the secondary elite real estate market: "Despite a small decrease in demand, investing in secondary real estate remains the most logical way to keep funds with minimal risks. The advantage of elite 'secondary market' is still a lower price level compared to the primary market, the difference between them on average is about 13–15%, as well as the high readiness of housing, which eliminates the element of uncertainty that is present in the primary market. However, the difference in prices on the primary and secondary market is gradually decreasing."