Leningradka: cottages prices will increase by up to 70% in 2 years?

Specialists from the land center of the Promsvyaznedvizhimost Group recently stated that cottages along the Leningrad direction will "take off" in price within 2 years by 50-70%. Undoubtedly, Leningradka is one of the most attractive directions for country real estate. However, many experts claim that the situation in this area is quite controversial: all the prerequisites for price growth are there, but it is unlikely to happen so soon and it will not be so sharp. Stated: - The cottages along the Leningrad direction will "take off" in price within 2 years, with an increase of 50-70%, depending on the proximity of the territories to Moscow. - Currently, prices for land along the Leningrad direction for wholesale sales are approximately $3,000 per hectare, while prices for land converted from agricultural to industrial or residential purposes reach $5,000 per hectare. - Retail prices range around $10,000 per hectare. "The reconstruction of intersections on Leningradskoye Highway, as well as the construction of one of the sections of the Moscow - St. Petersburg highway, are nearing completion," explained Igor Salnikov, Head of the Land Sales Department of the PSN Group. "The delivery date for the area near the road from Moscow to Solnechnogorsk has been set for 2014. And the traffic situation will definitely improve after the road repairs, as the road renovation and reorganization project for Leningradskoye Highway is already recognized as one of the best in the capital region." In addition, PSN notes that the Moscow authorities are announcing the construction of new schools and kindergartens in this direction. "Prospective areas of Moscow always quickly become populated with housing and corresponding infrastructure objects. There are already many infrastructure objects along the Leningrad direction, such as the well-known shopping complexes 'Mega' and 'Ikea', supermarkets, and household services. Firstly, the development of infrastructure will provide convenience for those who prefer to live outside the city: residents of cottage settlements will be able to comfortably purchase everything they need and use household services without leaving the city. The new highway will also provide the region's residents with a large number of job opportunities, as new logistics complexes will require maintenance and staff," commented Igor Salnikov. According to his company's data, enthusiasts of country living in comfortable conditions should hurry with the purchase of a cottage or land for a future country house in this direction: according to PSN experts' forecasts, the prices of objects along the Leningrad direction will rise within 2 years. "Our data confirms the situation on Kievskoye Highway: after its reconstruction, land prices in this area increased by 70%. Along the Leningrad direction, we forecast a price increase of 50-70%, depending on the proximity of the territories to Moscow," concluded Salnikov. He also noted that today large investors are boldly entering projects along the Leningrad direction, as there is potential for land value growth in this area. Verified: According to the surveyed experts, even if prices on Leningradka do increase, it will not be by 50-70%, but at most by 30%. Alexander Dubovenko, Development Director of the Investment and Construction Holding Good Wood, noted that prices on Leningradka will not start to rise, but are already rising. "They have already started to take off, but they will really take off at the end of 2013 after the launch of the new Leningradka," the expert said. "Undoubtedly, the Leningrad direction currently has the worst transport capacity. But after the

In turn, Director of the Country Real Estate Department at the Kalinka Real Estate Consulting Group, Yulia Grosheva, believes that predictions of future price increases for country real estate along the Leningrad Highway have a chance of coming true only if the construction of the toll road duplicate is successfully completed. Grosheva noted that the reconstruction will not fundamentally change the situation on the Leningrad Highway, as in the area of Khimki, the five-lane road narrows to three lanes, creating a constant bottleneck. However, she also noted that any improvement in transport accessibility will result in a 15-25% increase in prices. "Real estate along the Leningrad direction may also increase in price within the same range, but only when sections of the duplicate road are launched," she explained, adding that it will take more than 2 years, so it will only be possible to talk about price increases when the high-speed road is open to traffic.

The Head of the Sales Department at the "Little Scotland" village, Alexey Khizhnyakov, reminded of the scenario that was followed by the development of Novaya Riga. "After the renovation, the Novorizhskoye direction became one of the most expensive in the Moscow region," he explained. "Therefore, as soon as the issue of widening the Leningrad Highway is resolved, land prices will definitely increase: according to my projections, by 10 to 20%."

The Managing Partner of MIEL-Country Real Estate, Vladimir Yakhontov, noted that within 37 km of the Moscow Ring Road, the Leningrad direction is heavily built up, so there is no reason to expect a rapid increase in prices. "Prices here will rise along with the market," he said, adding that the Leningradka is an economy-class road and the construction of a new toll road will not lead to the emergence of business or premium-class real estate, except for individual projects that will not have a significant impact on the entire direction.

The General Director of DeviKo, Development and Consulting Company, Asset Gayrabekova, also expressed doubts about price increases on the Leningrad Highway in the next 2 years. "The price increase on the Leningrad Highway is inevitable and expected event by everyone, but not guaranteed in the near future," she said, noting, however, that when transportation problems in this direction are resolved, prices may increase two to three times in the economy and business segments, and approximately 80% in the super-economy segment.

Land prices along the Leningrad direction range from $3,000 to $10,000 for wholesale transactions, but agricultural land is much cheaper

According to Anna Sokolova (Metrium Group), the wholesale price of a plot of land along the Leningrad Highway varies from $5,000 to $8,000 per 100 square meters. Alexander Dubovenko noted that land on the Leningrad direction has already significantly increased in price. "If previously, suburban and large-scale plots of land wholesale cost $2,500 to $3,000 per 100 square meters, now within the concrete ring, the price per 100 square meters ranges from $6,000 to $10,000." He also estimated that agricultural land has also increased in price, from $300-$600 per 100 square meters to $1,000-$1,500, over the past 2 years in the Solnechnogorsk area.

Higher prices in retail sales

According to Anna Shishkina, in retail sales, land prices along the Leningrad Highway range from 150,000 to 170,000 rubles per 100 square meters ($5,000 to $5,700) for plots with limited utilities, and from 350,000 to 450,000 rubles per 100 square meters ($11,500 to $15,000) for plots with all utilities.

According to Inkom company and Dmitry Taganov, the average price for 100 square meters of land along the Leningrad Highway without a contract is currently about 179,000 rubles ($6,000).

Anna Sokolova noted that in Khimki, the cost of land today is $20,000 to $30,000 per 100 square meters, and in the near part of the Moscow region along the Leningrad Highway up to 20 km, the price of plots in cottage settlements ranges from $10,000 to $15,000 per 100 square meters.

Balla Amadu Fai mentioned a range of $10,000 to $15,000 per 100 square meters, and Dmitry Kotrovsky stated that it is almost impossible to determine the average price for 100 square meters of land along the Leningrad Highway due to the many factors that affect it. "In the same elite Novogorsk, the price reaches $60,000 per 100 square meters, while on the opposite side and closer to Sheremetyevo, there are offers six times cheaper. That is, the price range is from $10,000 to $60,000," the expert noted.

CONCLUSION

It seems that revolutionary price increases for cottages along the Leningrad direction should not be expected, at least not until the issue of transportation accessibility for this direction is definitively resolved. However, even in this case, a 70% price increase is practically not expected by anyone.