Prices of luxury real estate in Russia have suffered a great slump, its major daily, The Moscow Times, reported recently.
Since the last economic crisis that hit Russia way back in the year 2008, prices for such properties have increased by only 30.2 percent on the average, according to Knight Frank. This, so far was the highest in the world and the highest in Europe, except for London, as discovered by the real estate firm.
From the start of the present year, the sale of apartments at the newly constructed buildings in the most prestigious Ostozhenka district, have remained zero. This signifies a sharp decline in the overall market sales, according to IntermarkSavills real estate firm, in a statement released earlier. There are 76 new apartments that are included in the area's listing, but not a single unit has been bought, added the real estate company.
For the entire capital, there are 219 newly-built apartments that have been sold at the start of this year, Contact Real Estate firm cited in its July report. Its managing partner, Denis Popov, described that the elite apartment has reached its worse on all counts. "At the same time, we cannot call it catastrophic," he said in a statement which appeared on the firm's web site.
The cut on sale has coincided with the value of the Russian ruble against the U.S. dollar.
Last year, the O1 Group, owner of the 14 elite business center buildings in Moscow, purchased a 70 percent share in Vesper, a company which constructs luxury dwellings in prime locations, for $100 million.
However by December, the original owners bought back their stake. For the first half of 2014, the average price for a luxury property in Moscow dived from $22,000 per square meter to $19,950 in the second half. And in the first half of 2015, the price continued to go down at $17,350, Kalinka Real Estate Company reported.
This result was the seventh highest in the world and the highest in Europe, excluding London, the real estate firm said.
