Developers' interest in buying real estate at auction in the first quarter increased by almost a third

The department of real estate price expertise management of the State Budgetary Institution "Analytical Center" for the first quarter of 2024 issued 241 conclusions on expert examination of the reliability of the calculation of the market value of real estate objects for the registration of a sale and purchase agreement following the results of the auction. This is 30 percent more than in the same period last year.

The issuance of opinions allows to bring in line with the market conditions the cost of a particular lot, which the city realizes in the course of bidding. Last year the price on average was adjusted upwards by 1.7%. The result of issuing opinions is more income for the city budget and implementation of projects for Muscovites.

In total, more than 500 real estate transactions were registered in Moscow in January-March against 400 a year earlier. This trend shows the growing interest of investors in bidding in almost all segments of the market.

Demand features and trends

Large developers are particularly active within the framework of the Integrated Territorial Development (ITD). One of such transactions was the transfer of development rights for 6.6 hectares in the settlement of Kommunarka in New Moscow. The transaction amounted to almost 3.5 billion rubles. On this plot the winner of the auction intends to build about 600 thousand square meters of residential and commercial real estate.

Serious competition both among large players and individuals was registered for quality street-retail and trade objects. In some cases, the final price exceeded the starting price four times.

Freestanding buildings within the Moscow Ring Road are also popular with investors at auctions, but the activity is not as high as in the fight for trade objects. This is most often due to their condition. Buildings inside the Garden Ring and the TTC mainly require major repairs, and the investments required for this are often not commensurate with the potential profit from the sale of the object.

Another trend in recent months is the demand for small-sized buildings, which are equipped for catering outlets. In these cases, the task of experts is to prevent underestimation of the real value of the object, taking into account the market situation and related characteristics of a particular lot. This allows to achieve the maximum effect for the city budget and a fair price for the entrepreneur.

The city pays great attention to informing the audience about the possibility to participate in the auction. Interest in the real estate market is growing, including through the active involvement of individuals and small entrepreneurs. This is an indicator of high interest and availability of free funds in the capital's business.