Fewer construction sites and lower levels of housing construction are pushing up Moscow housing prices, which are expected to increase sharply by the beginning of 2012, experts said on Wednesday.
Alexei Dobashin, general director of Krost developer, said that Moscow housing prices were expected to soar 25-30 percent by that time. Alexander Khrustalyov, head of NDV-realty firm said that the price of apartments in the areas located close to Moscow were likely to increase 10-15 percent.
The Russian government's intention to broaden Moscow's boundaries will step up construction housing in the region and push up the prices of apartments, City-21st Century Commercial Director Vitaly Razuvayev said.
"There is tight competition for the housing market in the areas close to Moscow. Those companies which will offer well-planned neighborhoods with developed transport and social infrastructures will win," Khrustalyov said.
The average price of Moscow residential real estate has risen from $4000 per sq. meter in January 2010 to $5000 in June 2011, according to the irn.ru website.
