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Oct 26, 2010

"ASC MIEL": Muscovites prefer finishing housing

"Analytical consulting center MIEL" conducted a study of preferences of potential buyers of the Moscow region on the finish of the purchased apartments on the market as a whole, including new construction and resale.  Excluded  those who planned to obtain housing under the state programs.

the Most popular consumer fine finish housing. It is preferred by 68% of potential buyers of apartments and houses. This means that housing must be prepared for individual construction, installation of furniture and equipment by the buyer. The apartment must be made walls, laying floors, installing breakers and female group, equipped bathrooms etc.
Strong demand from 12% of customers use of the flat/house with trim "turnkey", when settling housing in advance built-in furniture in the kitchen, in the hallway and on the balcony, and a fully finished.

as an example, a two-bedroom apartment on Leninsky Prospekt in Gagarinsky district sold office "the University" Network "MIEL". The total area of 73.8 square meters, living – 48,3 sq. meters. The apartment is a repair design project, all redevelopment consistent with regulatory organizations. Installed built-in kitchen, all the household equipment, air-conditioning, plumbing. The cost per square meter is RUB 281843

Similar demands (12%) potential buyers are apartments with a rough finish, when the apartment has plastered walls, leveled floors, made communications wiring.

the least (6%) popular housing without finishing. This product involves only communications school in the house and the installation of heating equipment. Other types of construction and repair work already performed by the buyer.

moreover, among those who chose an apartment/house with different degree of finish, dominated by those who are not willing to pay for the further renovation of his new home (48%).

Among those who are willing to pay extra for further finishing, the amount of payment per square meter was as follows: 17% of respondents are willing to pay from 3000 to 3700 rubles per square meter, 14% are willing to pay up to 3,000 rubles per square meter, 10% are ready to pay from 3700 to 4500 rubles per square meter, and 9% are undecided with the size of the financing. The other groups represent less than 1%.

today in the market of new buildings of Moscow region is dominated by apartments without finishing (57%). With a share of 25% is made up of apartments with a rough finish. In addition, a small portion of the objects comes with a rough finish incomplete, i.e. only communications wiring in the apartment (13%), and isolated objects (about 5%) are offered to the market with a fine finish.

"Such divergence of supply and demand due to the fact that a significant number of objects undertaken were established several years ago in a period of shortage of supply and a seller's market, and the rapid growth of prices was forgiven many marketing mistakes  Today the buyer has become more demanding, and the recent avalanche falling demand and sales in the primary market (in late 2008-early 2009) has led many investors to think about consumer preferences, says luckow Vladislav, General Director of "ASC MIEL". - The main thing is that apartment working on the expansion of demand, partially pulling the buyer in the secondary housing market are not willing to spend the time and money to repair, as well as private investors, the dealer subsequently apartments for rent. But do not forget that not everyone is willing to pay extra for the finish, and there are buyers who don't need".  

"consumer dissatisfaction with the value for the price, quality and size of housing in the secondary market, pushes it to the segment of ready primary residence. In Moscow, developers have switched their focus and increase the number of finished housing, offering not only municipal decoration in economic performance for those waiting, but also a variety of finishes in the accommodation of the middle and business class market. This trend is beginning to manifest itself among the new buildings of the Moscow region, where the market has not had time to respond to this demand in a new format and is just starting to build a new product," noted Nikita Chulochnikov, head of Department of sociological researches "ASC MIEL".


You would like to see at the time of purchase, Your home was in a state:

(the sum of the responses equals 100%)


how Much are You willing to pay extra for the decoration of the apartment/the apartment is finished "turnkey" (per sqm)?

(% of those who chose an apartment/house with different degree of finish, the sum of the responses equals 100%)



a Survey of potential customers contemplating the purchase of housing in the next period (1-3 years),  held in June 2010 through telephone interviews. The sample consisted of  540 people. Respondents were residents of Northern, North-Eastern districts of Moscow (Zelenograd, Moscow, molzhaninovskiy, Kurkino, Mitino, Tushino, near Zapadnoye Degunino, Dmitrovsky district) and its suburbs.

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