Moscow is among top 10 leaders in the Prime Global Cities Index
Moscow holds 8th rank in the Prime Global Cities Index for the first quarter of 2021, published by the real estate consulting company Knight Frank. The index tracks the movement in prime residential prices* and determines the most attractive cities for large businesses and potential real estate investors. Moscow's position has improved by three points, comparing to the previous year. Moscow performed better than Taipei, Miami, Toronto, Geneva, and several other global urban centers.
According to the Moscow Analytical Center, in the first quarter of 2021, the share of supply in the elite complexes amounted to 6.3% of total volume of the primary residential property market. During the stated period, a significant amount of prime estate property has been commissioned, what kept prices high. Increased demand amid limited supply became the key factor in the price hikes.
The Knight Frank experts in their report indicate that in 46 cities of the world, that were picked for research, prices rose by an average of 4.6% at an annual rate, which is a record-breaking since the IV quarter of 2017. The first three ranks went to Chinese cities of Shenzhen (+ 19%), Shanghai (+ 16%) and Guangzhou (+ 16%). The price growth in the stated cities has been driven by increased economic activity and government investment.
New York, Dubai, London, Paris and Hong Kong round up the list. Prices for prime real estate properties in these cities have declined: New York (-6%), Dubai (-4%), London (-4%), Paris (-4%) and Hong Kong (-3%). The negative dynamics in these cities is down to the strict restrictions related to the spread of COVID-19, delays in the material supply, tax increases and other factors.
«The Moscow elite residential property market has been developing quite systematically and steadily for a long time, in accordance with the moderate growth trend», - Olga Shirokova, Director of Consulting and Analytics Department of the Knight Frank Russia, told the Moscow Analytical Center. According to her, «the direct increase in prices of the new buildings of the capital had a great impact, moreover, new projects obtain higher costs. «Until the end of the year, price spikes aren't expected, but the growing trend of the indicator in the segment will continue» - emphasized the expert.
The Knight Frank Prime Global Cities Index has been published quarterly since 2015. The index is based on proprietary statistical data from Knight Frank and identifies the largest cities, that are to be popular for real estate acquisition.* The most desirable and expensive property in a given location, generally defined as the top 5% of each market by value. Prime markets often have a significant international bias.