Comparative analysis of real estate from Creative Concepts
On October 13-16, Moscow hosted the major international real estate exhibition DOMEXPO. It was attended by over 200 companies, including 53 foreign ones. Guests of the event were able to learn a lot about elite (and not only) housing in new buildings and on the secondary market, about suburban real estate in Moscow, Moscow Region and such Russian cities as Sochi, Anapa and St. Petersburg. Foreign countries were represented by real estate companies from Bulgaria, the UK, Greece, Spain, Italy, Cyprus, the USA, Turkey, Montenegro and Switzerland, as well as seven companies operating in Dubai.
First of all, visitors to the exhibition paid attention to family housing in Moscow and its environs. At the same time, there was considerable interest of investors in foreign real estate. For many, the question of how to purchase a house or apartment abroad for personal use was relevant.
Visitors asked questions related to education in the UAE. To date, this decision looks very far-sighted. Branches of many European universities operate in the Emirates, the cost of training in which is relatively affordable, and the level of teaching is quite high. At the same time, a university diploma is issued by the country from which the university is run. The almost complete absence of crime and drug addiction, a tax-free economy, highly developed infrastructure - all this makes the Emirates a very favorable place for living and studying.
Among the exhibitors were we, employees of Creative Concepts - a Dubai real estate agency. We were pleasantly surprised by the professionalism of the exhibition organizers and the friendly atmosphere in which all four days of the event took place. Not to mention the warm sunny weather of autumn Moscow, which lifted the mood of all participants.
Summing up, we tried to conduct a brief comparative analysis of the real estate of Moscow and Dubai by such basic criteria as location, size of living space, availability of amenities and price.
We compared the data for two-bedroom apartments (in the Russian version - three-room apartments) in two different areas of Dubai and Moscow, as well as for townhouses. Of course, comparing two such different real estate markets as Moscow and Dubai is not entirely correct: each has its own characteristic features. Nevertheless, all visitors, regardless of where they came from, ask the same questions before deciding to buy a home: in which area is it preferable to purchase it, what is the price per square meter of area and what amenities are provided.
According to prices and other characteristics, the townhouses located in the Moscow district of Kurkino, according to our experts, can be compared with similar development in the Dubai areas of Springs ("Rodniki") and / or Arabian Ranches ("Arabian Ranches") (1)
Townhouses have been built in Moscow for more than 10 years. According to the definition given in the October edition of the Moscow Suburban Real Estate magazine, they are two- or three-story mansions, divided into several apartment blocks. Each section has a separate entrance, its own garage and a small plot of 2-3 acres in the backyard.
As a rule, townhouses are located in the village next to the usual "full-length" cottages and are European-style houses, emphasizing not only a rather high status of the owner, but also his desire to live in step with the times.
Such real estate is much cheaper than a cottage - primarily due to the size of the land, which accounts for most of the cost of a suburban property. In addition, the construction of townhouses is cheaper at the construction of communications.
However, in apartments the situation looks somewhat different. Taking into account all the costs, apartments in Moscow are at least twice as expensive.
All data on Moscow real estate were collected directly at the exhibition, as well as from periodicals of the current month. Summing up the comparative analysis of Dubai and Moscow, we came to the following conclusions.
Firstly, apartments in Moscow (in houses located not in the very center, but close to the Garden Ring) are much more expensive to check in than a similar property in Dubai. It should be noted that in Moscow, houses are far from being “turnkey”; sometimes in them there are not even dividing room partitions. But it is precisely on the interior decoration, based on existing world practice, that at least 60% of the cost of the building under construction is spent.
Secondly, in the center of Moscow, apartments are offered at prices ranging from 5 to 15 thousand USD per square meter. meter (which is comparable, perhaps, only with housing prices in the Burj Dubai tower). However, it should be borne in mind that in the center of Moscow, saturated with developed modern infrastructure, there are historical monuments, churches, temples, museums, as well as administrative buildings. Therefore, such a comparison is not valid.
Thirdly, the townhouses in the Kurkino area are comparable in price to similar mansions in the Springs project in Dubai. Most likely, this is due to the traditionally more popular villas and townhouses in Dubai compared to apartments in high-rise buildings.
The exhibition also allowed us to systematize and summarize information on mortgage lending. We found that taking a mortgage loan from a Moscow bank implies collecting a rather large package of about 20 documents. The bank evaluates the solvency of the client, taking into account his official salary. The interest rate for loans issued leaves from 14% to 20% per annum. In addition, the bank requires the borrower to pay all its services: separately charges a fee for issuing a loan (1% of the amount) and cashing it out (0.5% of the amount). You must then pay for the bank's consideration of the application, as well as the services of an appraiser, mandatory apartment and life insurance.
As a result, the client receives a much lower amount on credit than the one he was counting on. At the same time, the bank's rate can reach 22% per year, if housing is purchased in a house under construction. Simultaneously with the acquisition of real estate, it is pledged, which greatly limits the freedom of action of the owner. Any operations (including sale) with a mortgaged apartment are practically impossible. Although formally it is the property of the owner, in fact his rights will be limited until he returns the loan to the bank.
If you compare this process and the procedure for obtaining a mortgage in Dubai, then we can clearly say that here, on the shores of the Persian Gulf, everything is much simpler. Mortgage rates range from 6.5% to 7.2% per annum according to a decreasing scheme. There are no differences between the figures for new buildings and finished housing; there is no increased interest for the period of construction of the house. If the owner of the real estate decides to sell the housing financed by the bank, he will not have to pay the bank for the outstanding loan amount. Documents on financing will simply be reissued to the new owner by mutual agreement between the developer, the bank and the buyer.
Even from this brief review, it can be seen that the exhibition held in Moscow was very informative and productive for our company. Next year we will again take part in this or one of these professional events in the field of real estate.
For more information, please contact Creative Concepts Real Estate.
Tel .: +971 4 222 9007
Fax .: +971 4 222 1130
Email: [email protected]
www.crecons.com
Russian-speaking consultants:
(050) 387 5070 Sandra
(050) 302 1411 Philippe
