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Is there life outside Moscow?

Есть ли жизнь за МКАДом?

I’ve talked before about that country’s real estate market is in a difficult situation: too many projects, but the demand is now very low. Many projects simply idle without customers or selling not more than 20-25 per cent houses have already been built.

So it turns out that suburban developers have a choice — either to freeze their projects, or to raise prices to cover losses from non-realization, or to sell at a loss. But, on the other hand, the average cost per square meter in the so-called “middle belt” of suburbs is 92,000 rubles. It turns out that over the past year the cost of the “fence” grew by almost 3 percent. And this, in turn, means that “zamkadnoy” apartment complexes remain in the game.

Experts of the Russian market of real estate recognise that the suburban projects are currently in the most difficult situations. The fact is that if another country a year ago, developers competed for customers with their direct competitors, at the present time they entered into an unequal battle for customers with Metropolitan developers.

And here the situation for suburban developers very difficult. The fact that Moscow developers are ready almost immediately to go on a discount in 10 percent. And then, when the buyer come to them, reduce another 10-15 percent. In other words, the capital safely give a discount of 20-25 percent, but in rural areas such generosity to be more difficult. Likely, this trend will continue throughout this year. However, long-term dumping policies will gradually lose its effectiveness. But the developers themselves know perfectly well that now we need to find new ways to survive in a turbulent market.

Despite pessimistic forecasts of many experts about the future of the suburban real estate market for the current year, the mood of the players become more optimistic, as only extended until the end of 2016, the program of state support of the mortgage market. Worse than last year, definitely not the experts with confidence. However, in many ways, the results of the year will depend on whether suburban developers to win the competitive struggle for Moscow projects.

There is another important point-of-town market, which pay the attention of many experts. Over the past year have changed dramatically, the expectations of customers, customers want to get the house of the best quality. In other words, regular customers, even for minimum money don’t agree to buy the conventional “box” without finishing, especially if it is located outside the Moscow ring road. The project for the ring road successfully sold, residential complex or village should have their own infrastructure, good transport accessibility and desirable modern finish.

According to the Director of Department of consulting and project management company “Metrium Groups” Anna Sokolova, the life of the suburban developers this year will only become more difficult. After all, according to the expert, the current crisis is not similar to the ones that the real estate market experienced in 1998 and 2008-2009. But many developers, according to Sokolova, do not understand and are trying to exist under the old laws.

“Dumping is not the way out of the situation. To play it for a long time is impossible, it inevitably leads to collapse. Therefore, before it is too late, you need to develop other options. First of all, this flexible approach to each client. You must also be prepared to Refine the project to reflect changing customer preferences. Only then do projects for the Moscow ring road has a future”, says Sokolova.

In General, housing outside Moscow is the prospects for sales growth. But developers should be flexible.

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