Millions returned to Rublevka In the face of economic turbulence and uncertainty, the affluent district of Rublevka has witnessed a significant comeback of its former residents. Reports suggest that millions of individuals have made their way back to the renowned area, which has long been associated with luxury living and opulent lifestyles. The revival of interest in Rublevka reflects a partial reversal of the previous trend of wealthy individuals abandoning the district due to financial concerns. While the reasons behind this recent shift remain unclear, experts predict that the allure of Rublevka's prestigious reputation and the desire for a secure investment may be contributing factors. Regardless of the underlying causes, this surge in population is expected to have a profound impact on the local real estate market and overall development of the area.

Gazeta.ru

Buyers with large budgets are returning to the luxury suburban real estate market. The increase in buyer activity has already caused prices for new properties to rise. Gazeta.Ru tells us what has revived the market for luxury suburban homes and who is currently buying homes on Rublevka.

Money is returning

In the spring, buyers with large budgets began to return to Rublevka. If in the last quarter of 2014, the main demand on the suburban luxury real estate market was focused on budgets of $500,000-800,000, then in the first quarter of this year, buyers are ready to purchase homes for $2-5 million, according to Tweed analysts.

International consulting company Knight Frank also notes that the average selling price of a primary suburban luxury property in the first quarter increased by 15% compared to the end of 2014, reaching $2 million. At the same time, the most common budget for purchasing properties today is slightly less - 40-60 million rubles (approximately $1 million).

The increase in activity of buyers of more expensive mansions is related to the strengthening of the ruble and temporary calm, according to experts.

"In January, there was a nervous atmosphere - clients told brokers that they would rather wait in dollars before buying real estate. Now the positive thing is that the situation at least does not deteriorate. People are slowly getting used to the exchange rate," says managing partner of Tweed, Irina Mogilatova.

According to the expert, while potential buyers were considering the market, many "anti-crisis" offers were already sold at a good price, and the purchasing budget had to be increased. "I think that the activity is related to the fact that people do not know what will happen next and as a precaution, they diversify their safety cushion," the analyst concluded.

Today, suburban real estate is being purchased for personal use or to preserve capital - there is no talk of increasing funds.

"Investments in the suburban market should be temporarily forgotten. There is currently only one project on the market that represents investment interest, all the rest cannot be considered as a way to increase capital," says director of the suburban real estate department at Kalinka Group, Julia Grosheva.

Prices are rising

According to Tweed, ruble prices for luxury suburban real estate increased by 8-9% in the first quarter of the year. This happened not only due to the growth of the dollar exchange rate, which occurred until recently, but also due to the "washing out" of cheap offers. "Since no new premium and de luxe class projects have appeared on the primary market and their appearance is not expected in the near future, the supply is decreasing and prices, accordingly, are increasing," explains Valentin Zuev, head of the sales department at Villagio Estate.

Developers, who left prices in dollars, have increased the fixed exchange rate of the ruble by at least 10% - from 38-39 rubles/dollar to 42-45 rubles/dollar.

The main demand traditionally fell on Novorizhskoe and Rublevo-Uspenskoe highways: they covered two-thirds of the market.

Prices on Novaya Riga have grown by 8.5%, on Rublevka - by 2.2%, according to Villagio Estate.

Demand on Minskoe highway has increased by 20%, as buyers from Kievskoe and Kaluzhskoe highways are moving there due to large-scale construction of multi-storey residential buildings. More about potential alternatives to Rublevka can be found here.

Predictions for price dynamics in the near future still vary. Some believe that the suburban market has already reached its bottom and expect a significant price increase in May, while others forecast a price drop in the fall of almost 50%.

Nevertheless, it is still difficult to sell mostly illiquid secondary houses on Rublevka, and some properties have been taken off the market. Experts expect that they may start returning to the market in late spring or early summer.

Owners of elite mansions who need to sell their estate urgently are forced to give large discounts - and buyers take advantage of this.

Often, with a budget of $5 million, a buyer expects to get a house worth $7-10 million, understanding that his expectations of a 50-60% discount will be fully justified during negotiations, says Nina Reznichenko, director of the suburban real estate department at IntermarkSavills.

Who is buying luxury real estate now

The portrait of a Rublevka house buyer has not changed much, but now country real estate is primarily purchased for personal use. The only change is an increase in the number of regional buyers in the market.

"Due to the crisis situation, prices have adjusted, making the purchase of a country house truly profitable. Among the clients, there is a large number of buyers from the regions who are moving to the capital," says Alexey Treschev, head of the suburban real estate department at Knight Frank.

The main buyers of luxury houses are still businessmen, financiers, and officials - each category accounts for approximately 30% of the demand, with the remaining 10% of clients being representatives of the show business industry.