Demand for Luxury Homes in Moscow Increased 600 Percent in 2009

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(MOSCOW, RUSSIA) -- Despite the recession the demand for luxury real estate in Moscow and St.Petersburg regions in the last 12 month has increased by 6 times, according to recent report of leading Russian analysts.

In 2009 the most stable demand in the Moscow market of luxury real estate observed in the segment of countryside real estate with luxury housing priced at $2-$3 millions which account for 60% of total demand for elite real estate in Russia's largest cities.

However at the same time the demand for property priced at $5 million and more in 2009 fell by three times, with no more than 10% in total demand.

"The average purchase price on the primary market for luxury housing is approximately $3.5 million. At the same time there is a significant price gap in the housing complexes of such class," - said analysts from the Russian Kalinka-Realty Consulting Agency.

According to their report, since the recession prices for elite housing in the Moscow region have decreased by 30-35%, while in some cases up to 60%.

"Currently there is a possibility to buy a luxury property for $2.5 to $3 million which previously priced at $5 million," - analysts added.

Most of rich Russian consumers prefer to buy houses with total floor area from 400 to 800 sq. meters, while the demand for property starting from 800 square meters and up, due to the crisis, has significantly decreased. 

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