Real estate prices in Moscow are cheaper

Moscow is becoming cheaper

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Moscow has long been known around the world for the most expensive boutiques, the most fashionable restaurants and one of the highest property prices in the world. According to a recent survey of the real estate market from the Knight Frank LLP Company, prices in the Russian capital are becoming more rational.

The Knight Frank LLP Company has published a study which states that the luxury housing around the world has become more accessible thanks to the global financial crisis. Prices for luxurious accommodation in 56 of the most prestigious areas of the world from Monaco to Barbados last year decreased on average by 5.5%. Almost for 12% decreased the prices for elite real estate outside the cities, on the coasts and ski resorts and that is purchased as a second "resort" shelter.

The most expensive property in the world, repeating the results of last year, became an elite housing of tax haven Monaco. The decrease in prices here was for 15% per year with the cost of 4 300 - 5 900 U.S. dollars for square foot.

Some points behind the leader is London (2 place), which showed in the past year, in contrast to its competitors, price increase of 6%. The cost of real estate here starts from $ 3 900 per square foot.

The famous capital of love and the Mona Lisa, Paris, is ranked third, with the cost of luxurious real estate varied from 2500 to 3000 dollars per square foot.

The phenomenal growth of prices showed the quickly recovered from the global financial crisis China, Hong Kong, Singapore and Jakarta. Extraordinary prices were in Shanghai: with the average price of 500-700 dollars per foot, the rise in prices was 52%. The fourth place of ranking is hold by Hong Kong, where the cost of elite real estate ranges from 2000 to 2500 $ per square foot.

The Fifth place is divided between Rome and Geneva, where the cost of luxury is 2000 - 2300 USD per square foot.

According to the results of the current study the Russian capital left five "most expensive cities" and takes only the sixth place in the ranking. Last year, prices for elite accomodation in Moscow decreased by more than 6% and were amounted on average of 2100 - 2400 U.S. dollars per square foot. It should also be noted that in recent months on the Moscow real estate market there is a substantial recovery. Particular attention of buyers, with the lower prices for the office premises, in concentrated on commercial property, in particular the purchase of buildings by the companies for their own needs.

Date: 24/03/2010