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Moscow
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Land Newsletter. October 2009 |
 | 8 december 2009 Category: Forecasts |
 | newsletter_land_october_2009_eng.pdf (filesize 48.30 KB) |
Decrease in sales prices for land continues throughout Q3 2009 together with the reduction of demand from potential buyers.
Number of legislative changes, related to regulation of land ownership is currently being developed by both federal and municipal authorities.
The Lower Chamber of Russian Parliament in its first reading accepted amendments to the Russian Land Code, thus prolonging the time for changing category of industrial and agricultural lands with already existing building into other types of lands, for 3 more years.
The government of the Moscow Region is also planning to start confiscating industrial lands from owners who have not been using these lands in accordance with the designated purpose for more than 2 years.
In 2010 re-calculation of lands’ cadastre value will be done for state, municipal, and private property.
The demand at land market changed in the beginning of 4Q 2009, first of all because of increase of the average size of request for land plots.
According to Knight Frank, the number of incoming requests in October was one of the lowest in comparison with previous months of 2009.
The number of requests for land in October has decreased almost in 3 times in comparison with the maximum indicator – February*
During the first 3 quarters of 2009 the structure of demand was represented by requests for land plots up to 3 hectares (almost 70% of requests). In October the structure has changed – the average size of request is from 3 to 5 hectares.
The most widespread request sizes in 2009 – from 3 to 5 hectares
According to Knight Frank, it is too early to talk about revival at the land market. Due to relative stability in macroeconomics, several land transactions took place in the market, mainly in Moscow Region. Potential buyers make their plans for land acquisitions in 2010. Basically, land plots are purchased for own needs and projects – for example, development of industrial buildings or shopping centers.
When choosing a location of the land plot, potential buyers prefer Leningradskoe Hw. (26%), Kashirskoe Hw., Simferopolskoe Hw., Dmitrovskoe Hw., Novorizhskoe Hw. (all 8%) and Kievskoe Hw. (7%).
Leaving analysed the price indices of industrial land, the Novorizhskoe Hw. has been identified as the most expensive direction for acquisition of industrial land.
Maximum prices for industrial land depending on Highway (from MKAD to A 107 (Small concrete ring))
Trends
The situation at the land market depends directly on the general economic situation in Russia. If main macroeconomic indicators remain stable or improve it is possible to expect active demand revival at the land market in Q1 2010. It can lead to market stabilization, beginning of active land sales and even positive price correction.
