"Rublyovka" has lost its status as the most expensive new construction projects.

Specialists from Kalinka Group - a leading consulting and real estate company in the luxury property market, analyzed the dynamics of prices for luxury new buildings on the suburban real estate market and came to the conclusion that Rublevo-Uspenskoe Highway has lost its status as the most expensive direction in terms of the cost of elite new buildings. In the first half of 2015, the average price of a lot on Rublevo-Uspenskoe Highway decreased by 36% and amounted to $2.195 million.

The trend of decreasing house prices in cottage villages on Rublevo-Uspenskoe Highway, showcased in the primary suburban market, began already last year. If in 2013, the average price of a lot there was estimated at $4.013 million, by the end of 2014 it was already $3.412 million. Based on the results of the first half of 2015, the average budget for offering elite houses in this direction decreased by another 36% and amounted to $2.195 million. At the same time, overall market decline for the half of the year was 17% - the average cost of one dwelling is $2.100 million (excluding plots without contracts and townhouses).

Dynamics of average offering prices for dwellings in elite suburban villages in Moscow Region, primary market, thousand $

                       2013               2014         I-2015               dynamics

Dmitrovskoe

4 013            3 412           2 195        -36%

Pyatnitskoe

1 753            1 430               -                        -

Novorizhskoe

2 712            1 424           1 482       4%

Rublevo-Uspenskoe

4 013           3 412           2 195        -36%

Minskoe

3 814                                               -

Landmark

4 650

3 739

4 590

23%

Kievskoye

2 161

1 693

1 700

0%

Kaluzhskoye

2 104

1 265

-

-

According to analysts at Kalinka Group, the decrease in the dollar value of luxury real estate should be considered methodological, primarily due to the devaluation of the ruble and the transition of a significant portion of elite settlements to pricing in Russian currency. "Today, almost half of the luxury primary market settlements on Rublevo-Uspenskoye Highway are priced in rubles," comments Ekaterina Rumyantseva, Chairman of the Board of Directors at Kalinka Group. "The decrease in the dollar value of properties started in October last year when developers, adequately responding to foreign currency exchange rate fluctuations, fixed the USD to 39-43 rubles and then completely switched to ruble pricing. Of course, there has been a significant decrease when converted to dollars at the current exchange rate."

In addition, the selection of modern quality properties in elite settlements on the "near Rublyovka", where traditionally the cost of country houses is significantly higher, is becoming increasingly limited with each passing year. New premium-class projects with large volumes have not entered the market for quite some time, and the majority of the offering has shifted to the "far Rublyovka", which has also affected the pricing situation in this direction.

Overall, the structure of the primary offering in the luxury country real estate market is concentrated at a distance of 21 to 30 km from the Moscow Ring Road (MKAD), where more than 40% of the properties are presented.

Structure of luxury settlement offering in the primary housing market of the Moscow Region, based on distance from MKAD

Distance from MKAD	Offering volume
Less than 10 km	14%
11-20 km	33%
21-30 km	41%
More than 30 km	12%

In addition, significant changes in the structure of the offering were noted in individual directions, according to Julia Grosheva, Director of the Country Real Estate Department at Kalinka Group. This is due to the completion of sales in certain settlements as well as changes in the product line. For example, the 23% increase in the average budget of offerings on Minskoye Highway is associated with the withdrawal of properties with minimum budgets.

"In the Minskoye direction, the offering of luxury country homes is formed by two settlements - 'Dovil' and 'Truvil'," says Julia Grosheva. "Even a minor change in their product line affects the statistics of the average offering price. The most liquid properties with relatively small areas are sold first, while expensive houses and cottages find buyers much later."