Despite the economic slowdown, Moscow residents continue to snap up apartments -- at least, inexpensive ones that can be purchased on installation or credit.
With land costs within the city reached an inflated average price of 142,000 rubles ($4,590) per square metre in December 2010, up by 115,000 rubles from the year before, cheaper apartments selling at 100,000 rubles per square metre are most popular among buyers.
Construction of residential units has moved beyond Moscow city limits, but about half of the projects are not keeping to their scheduled timeline. Of about 1,200 housing construction contracts in the capital with completion dates within the time span of 2010-15, about 830,000 square meters are on hold, while 10.8 million square meters are still at the planning stage. A lack of financing has been blamed for the construction freeze.
Despite this, 10 to 12 million square metres' worth of new development projects are expected to hit the market in the next two to three years.
Source: The Moscow Times