The average budget of implemented apartments in elite new buildings is half as much as that of regular apartments.

Specialists from Kalinka Group - a leading consulting and real estate company in the luxury property market - note that the decline in quality indicators in the high-budget new construction segment has mainly affected the apartment format. In the first half of 2016, the average budget for a sold apartment was 50.9 million rubles, while for apartments it was 102.2 million rubles. Overall, the average cost of a sold property in the market was 79.4 million rubles, a decrease of 27% since the beginning of the year. Thus, the trend of washing out liquid offers in the primary market of luxury housing continues. In the apartment format, the reduction in the average budget for a transaction is happening more rapidly: by 41% in six months, compared to 17% for apartments. Average transaction budget in the luxury primary housing market, million rubles: II-2015 I-2016 % Market in general 108.9 79.4 -27% Projects with apartments 123.7 102.2 -17% Projects with apartments 86.3 50.9 -41% Source: Kalinka Group "Typically, apartments are 10-20% cheaper than apartment counterparts, and every third or fourth buyer purchases them to save money or for rental business," explains Ekaterina Rumyantseva, Chairman of the Board of Directors of Kalinka Group. "Apartment complexes enable clients to make affordable and reliable investments in real estate in prestigious areas of Moscow, as the lot sizes in them offer more variability than in similar apartment projects." The average size of a sold property in the luxury housing segment decreased by 14%. The size of sold apartments decreased on average by 29%, while apartments only lost 6%. Average size of sold property in the luxury primary housing market: II-2015 I-2016 % Market in general 137 sq. m 118 sq. m -14% I need professional translation to English. Keep the original formatting and do not translate the English parts.

-14%

Projects with houses

211 sq. m

180 sq. m

-15%

Projects with apartment buildings

201 sq. m

173 sq. m

-14%

Projects with apartments

154 sq. m

145 sq. m

-6%

Projects with luxury apartments

131 sq. m

93 sq. m

- 29%

Source: Kalinka Group

Developers, based on real demand, offer the market apartments with unusually modest areas for the luxury segment. For example, in the Chistye Prudy area (Central Administrative District) at the end of 2015, the premium-class residential complex "Sovremennik" (Mashkova St., 13, developer Vesper) was introduced to the market, where apartments with finishes ranging from 31 square meters at a price of 16.8 million rubles are being sold with good dynamics. Since the start of sales, 45% of the area has been sold here.

Luxury apartments are predominantly concentrated in the Central Administrative District of the capital. As of August, 520 apartments in 19 projects, or 42% of the total supply of luxury new buildings, are available for sale here. 

The Central Administrative Districts with the largest number of showcased luxury apartments:

District	Number of lots	Most large-scale projects
Arbat	212	- MFC "Zvezdy Arbat" (Novy Arbat St., 32) - MFC "Teatralny Dom" (Povarskaya St., 8)
Tverskoy	130	- MFC "Sady Pekina" (Sadovaya B. St., 5)
Zamoskvorechye	90	- Balchug Viewpoint (Sadovnicheskaya Emb., 3-7) - Balchug Residence (Sadovnicheskaya Emb., 31)

Source: Kalinka Group