How a bad economy affects the real estate market participants
Andrey Zakharchenko
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Photo: Alexander Krasnov/ TASS
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What the go developers to draw on their facilities buyers? What model of behavior are chosen with citizens who can afford such a purchase? Market experts talk about fresh trends in the segment of new buildings in the capital region.
Developers shamans with profit
After analyzing the state of Affairs in the primary market over the past two years, experts in real estate sales found that to date has significantly increased the number of new projects, where customers are offered the objects with the finish. Thus, according to representatives of the company “MIEL-new Buildings” by the end of 2015 in all areas of Moscow the number of such proposals has increased almost in 2 times.
According to its Director Natalia Catalinas, due to the increasing competition among developers in Moscow, the last faced with the need to adhere to flexible price policy, exposing the implementation in the same project of apartments as finished, and without. Now, however, in the primary market of the capital there are projects in which all objects are finished. In the New Moscow, given reduced demand and a fairly extensive proposal, says Natalia Shatalin, developers in the pursuit of buyers and previously quite actively offered trim objects in different ways. In particular, in some such projects could boast of only one-bedroom apartments and studios, because, according to developers, these are objects and are considered as the primary option buyers, are having difficulties with the budget.
The overall result of this policy is as follows:
- within the old borders of the metropolis such lots are presented in 15 projects, accounting for 12% of the total number (compared with 7% at the turn of 2014 and 2015), and most of them are houses that are built by panel technology;
- in the incorporated areas of the apartment are implemented in 11 projects (30.6 per cent, almost one-third of the total number of residential complexes within these boundaries right now against 26% the previous year).
More recently, the objects for sale on the market were presented in a minimal amount, as in sentence structure prevailed business class (and purchasers of such facilities are not welcome, say the representatives of realtor agencies because they prefer to implement their own design solutions). To date, however, the ratio clearly is in favour of mass segment (and in the foreseeable future the advantage will only increase), therefore developers, with confidence experts assume, in an effort to make their projects more interesting, will increase the share of such proposals.
“Remarkably, — said independent realtor Kirill Morozov, is that this trend is presented under sauce of care by the developer on the buyer during difficult times. However, I believe that here there is nothing but cold calculation”.
Because in fact, says the expert, the precise boundaries of the concept of “finish from the Builder” does not exist, so under this “brand” the buyer may be asked anything. For example, only aligned for wallpapering the walls or ceilings whitewashed. But even if this was laid the flooring with the rest of them put “bells and whistles”, says frost, then it is not a guarantee that the quality of materials will meet at least the minimum sanitary norms, not to mention the fact that their appearance may appear not to please the buyers. “So that developers, by and large, simply use the situation to make the most from a tightening of the belt of the citizens, faced with the need to solve their housing problem, more money for the old product in upgraded packaging, because, as you know, the poor can’t be choosers, — concludes the specialist. — So citizens are forced to pay for the object more expensive to subsequently still further to spend a certain amount of money to bring the accommodation to an acceptable aesthetic condition”.
It is the opinion of the expert of real estate market is particularly relevant in light of the decreasing trend of square footage under construction projects by an average of 10-15 square meters. For example, if the size of Moscow “treshek” ranged from 80 to 110 square meters, now the “ceiling” as a rule, does not exceed 85. The most demanded among buyers of the objects in the field “uzhalsya” to 60-75 square meters (against 70-75).
Buyers are fleeing from Moscow
Yet, say representatives of “INCOM-real Estate”, the demand structure has not changed. As in the second half of last year, 87% of citizens are interested in objects of class “comfort” and “economy” in Moscow (including “new”), and in the middle zone of Moscow region (for comparison, in the pre-crisis period it was 55% in the old city limits and 75% in the incorporated areas and in the field).
Meanwhile, consumers themselves in the conditions of economic instability change their model and strategy.
For example, before the crisis the average check transaction with the primary mass property of segment (class “comfort” and “economy”) in the Moscow region ranged from 4 to 5 million roubles, and in capital — from 7 to 9 million rubles. At the end of 2015 and 5.7 million in capital (including new territory). There is almost a twofold drop.
However, experts say, apartment the lowest price category selects only every tenth buyer. The other nine, guided by the principle of balance of consumer characteristics of the apartment and its value, selects the object from the point of view of its comprehensive assessment. Are taken into account many factors, among which the main ones are transport availability, the development of district and neighbourhood infrastructure and environmental situation in the border locations and on adjacent territories.
Partly for this reason and partly because of the predominance of supply over demand, also almost doubled the time of making the nationals final purchasing decisions. In “fat” years of the market to think people took one and a half to two weeks, now they need to do this on average about a month.
In this case, experts say, about one fifth of all potential buyers “primary” in the Metropolitan area are not just looking for objects with an optimal ratio “price-quality”, but almost “hunts” for the best deals. How long can such “hunting”, experts of the market don’t specify, but emphasize that in the case of finding a suitable proposal for decision and signing of the necessary documents takes just a few days.
Compared with previous years, the number of appeals to intermediaries (the estate agents) on the purchase of real estate decreased (-35% compared to 2013). But the conversion calls themselves a real bargain compared with the same period had increased by almost two and a half times (30% now vs. 12% in late 2013).
However, the “incombat” Julian Gutman, the number of Muscovites who purchase for own stay apartments in the area, continues to increase steadily (by approximately 10-15% annually). The reasons for this migration, according to experts, is quite easily explained. Unlike noisy, presenteranno and not always successful from the point of view of ecology capital in the satellite towns, the situation with transport and social infrastructure continues to improve, and the environment is not the best example. The more money raised from the sale of at least “odnushki” in the metropolis enough to purchase two bedroom apartments in the area.
