The number of cheap apartments in the center of Moscow collapsed

Over the year, the supply of budget apartments in the center of Moscow fell 2.5 times, Gazeta.Ru reports, citing data from Metrium.

Pavel Bednyakov / RIA Novosti

In new buildings of the Central District of Moscow, 96 flats and apartments worth up to 15 million rubles are sold. A year earlier, there were 230 such lots.

Gentrification processes have been going on in Moscow for a long time – that is, replacing the less wealthy residents of the districts with more wealthy ones, Valery Tumin, director of the Russian and CIS markets at fam Properties, explained to Invest-Foresight. First, of course, this concerns the center of the capital, but these processes are most noticeable inside the Garden Ring and in certain elite areas in the West and Southwest. The authorities are doing a lot to renovate the housing stock and build a new, comfortable urban infrastructure: this is modern transport, parks, bike paths, and places for playing sports or playing with children.

Naturally, in such areas, housing is starting to cost more and more, and inexpensive housing stock is naturally declining.

“So, it is not so much surprising that the supply of budget apartments in the center of Moscow reduced by 2.5 times, but the fact that they remained there at all. In my opinion, this market segment has no prospects: it is just a curiosity, an atavism, and in the next couple of years the number of such proposals, in my opinion, will generally fall to the level of statistical error,” Valery Tumin predicts.

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