Analytics

BUYERS REDUCE THE METERAGE

02.08.2018

Their interest in studios revived

Consumer interest in small apartment studios, which became one of the symbols of the crisis of 2014-2015, was revived. For a year, the demand for them has increased by one and a half times, and prices have increased by 6-19 per cent. The revived trend already encourages developers to revise projects, increasing the proportion of small apartments in future residential complexes. Affordable mortgage has brought to the market a new category of buyers - young people under 25 years old, for whom the acquisition of housing is more profitable than its renting.

The volume of the studio apartments (up to 32 square meters) in the exposition in Moscow for the year decreased by 19.1 per cent, analysts of Est-a-Tet have calculated. Now in new buildings within the boundaries of the old Moscow, according to analysts' estimates, only 4.3 per cent of the total volume of the offer falls to their share. The head of work with key partners of Esta-Tet Roman Rodiontsev believes that this is due to high demand.

"The interest of buyers to this format of housing from July 2017 to July 2018 grew by one and a half times, while developers rarely allocate more than 10-12 per cent of the total volume of apartments for the studios," - he explains. According to Mr. Rodiontsev, now the share of studios accounts for 9.3 per cent of all transactions in the primary real estate market of Moscow.

These calculations are confirmed by other analysts. According to Metrium, since early 2018 the number of exhibited studios in Moscow has decreased by 8 per cent due to the growth in demand. This happened despite the fact that the developers over the same period increased their share in the offer from 5.9 per cent to 6.4 per cent. Small apartments in the residential real estate market enjoyed high demand during the crisis of 2014-2015. "Purchasing power declined, and steel developers actively reduce the price of the entrance ticket to the market”, - says the head of the analytical center CIAN Alexey Popov. But in 2016 the situation began to change: developers naturally began to reduce the number of small lots in the projects.

According to CIAN, in 2015-2018 the proportion of studios in new Moscow projects fell by almost a third - from 14 per cent to 9 per cent. "Now in Moscow, the average market share of studios, depending on the location and class of the project is from 5 to 10 per cent, in the suburbs – from 10 to 15 per cent", - says the commercial director of the Federal Construction Company Leader Pavel Bryzgalov.

But many developers have already begun to respond to the changing market conditions, returning to small-sized housing. Dmitry Tsvetov, the marketing director of the A101 Group of Companies, says that since the beginning of 2018 the share of studios in the company's offer due to the withdrawal of new buildings has increased by 2 per cent. He reminds, that traditionally interest in such a housing in New Moscow was not large. "But now because of the availability of mortgages, young people up to the age of 25 began to buy property, often students of the latest courses", - explains Mr. Tsvetov. According to him, only 15 per cent of such buyers pay for housing immediately, while among customers after 25 years this figure is 30 per cent. Sales Director of the Group of Companies Granel Rustam Arslanov also points out that the share of studios in the new projects of the company has grown from 10 per cent to 15 per cent. In the Metrium they indicate that the growth in the popularity of studios in conditions of limited supply has already become the reason for increasing their cost. According to analysts, in Moscow since the beginning of 2018, studios in the mass segment have risen in price by 6.3 per cent, up to 185.3 thousand rubles for 1 square meter, in New Moscow, the growth was by 18.9 per cent – up to 125.6 thousand rubles for 1 square meter. But the head of the analytical center Inkom Real Estate Dmitriy Taganov calls the format of studios not very profitable for developers: "The area of ​​a standard one-room apartment is larger, and the difference in price is insignificant, respectively, the cost of selling such an apartment is higher." The second reason he calls the design features: a standard development project involves the construction of standard apartments, where a small part of small apartments can be included. "To build an "anthill" from studios is difficult and unprofitable," - Mr. Taganov sums up.

Author: Alexandra Mertsalova

All materials