Investments in Moscow real estate in 2020 reached record levels
At the end of 2020, the real estate market in the capital of Russia saw an increase in housing sales. Then, according to official statistics, there were more than 20 thousand transactions with secondary housing, which was a record for this sector. Another achievement was the figures for mortgages for the purchase of housing – more than 13 thousand loans. Such dynamics show that investments in Moscow real estate are growing, which is confirmed by the dynamics of the current year.
Experts explain the increased demand for the capital objects by favorable rates on privileged loans and reduced interest on deposits. In addition, Russian investors, who previously preferred to invest in foreign objects, show high activity. Due to the closure of borders they focused their attention on the local market.
As for the current year, last month there was an increase in secondary transactions by 18% compared to the previous month.
In December 2020, the number of transactions exceeded the results of the same period in 2019 by 27% A total of 20,128 contracts for the sale of property in the secondary market, which is the highest value in the last 10 years.
There were 148,946 transactions at the end of 2020, a figure 2% higher than in 2019, but 5% lower than in 2018.
Experts noted the dynamics of the secondary market during the pandemic. If during normal times this segment demonstrated rather low rates, the processes associated with the outbreak of coronavirus made it intensify. One of the key drivers was the introduction of the preferential lending program. Initially it helped to increase sales in new buildings, but by July 2020 the volume of secondary market transactions soared by 122%. The weakening of the ruble also played a role – people wanted to reduce the risk of losses, and invested their money in real estate.
It should be noted that the growth in demand for housing at the end of the year is a very traditional process. During the pre-holiday period there are a lot of deals, but in 2020 the growth dynamics was observed since August.
Over the last period there were 16% more mortgage agreements than in 2019. This result was achieved due to the reduction in the key rate during the year.
The introduction of preferential conditions for mortgages has affected not only the purchase of housing, but also its sale. Many residents of the capital decided to get rid of existing apartments and houses in order to buy new, larger or more comfortable in terms of location. The percentage of people who bought real estate in Moscow with a view to obtaining additional income and further renting it out has also grown.