Investment in Moscow: Investment climate factors

More than 3 million sq. m. of housing are annually constructed in Moscow.

The Moscow housing stock amounts to about 236.9 million sq. m. or about 19 sq. m. per capita. Over the past 6 years, the Moscow housing stock has increased by about 19 million sq. m. of residential buildings, with 3.38 million sq. m. introduced in 2016 (including 1.7 million sq. m. in New Moscow), and 0.7 million sq. m. during the past 5 months of 2017, almost 0.2 million sq. m. of which in the New Moscow. Moscow accounts for 4.2% of housing construction in Russia.

Under the Moscow Housing state program, it is planned to build 9.4 million sq. m. of new housing financed from budgetary and extra-budgetary sources in 2016-2018.

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Commissioning of residential buildings, million sq. m.

Source: Rosstat.

An average housing price (a typical medium-quality apartment, according to Rosstat data for QI 2017) is 99.7 th RUB. (1.7 th USD) per 1 sq. m. on the Moscow primary housing market, and 152.3 th RUB (2.59 th USD) per 1 sq. m. on the secondary market. According to the ratio of housing prices to the disposable income of population, Moscow is cheaper than London and Hong Kong, comparable to Singapore, and more expensive than Paris and New York. View the chart

Ratio of housing prices to the disposable income of population* in different cities of the world, July 2017

*Calculated as the ratio of the median 90 sq. m. housing value to the median family disposable income per year.
Source: Numbeo.

Moscow provides a wide selection of hotel rooms and rental housing.

The capital currently has 1086 classified hotels and other accommodation, from five-star to mini-hotels. In total it is 62.9 thousand rooms, which can accommodate almost 163 thousand guests. Until 2025, the branch development schedule in Moscow includes the construction of 355 hotels (80 thousand rooms) for 162 thousand quests, expanding the Moscow hotel chain up to 724 hotels, with the percentage of 4-5 stars hotels expected to reach 35%, and 2-3 stars hotels 65%. 11 hotels built in 2017 will increase the Moscow quality hotel room stock by more than 3000 rooms. In 2018, the city will be provided with 27 new hotels for 3800 guests. View the chart

Development of hotel networks in Moscow up until 2025

Source: Moscow hotel development schedule (as of 07.07.2017)

Moscow hotels are actively preparing for the World Cup: as of July 2017, 1086 hotels and other accommodation facilities with 62.9 thousand rooms for 163 thousand guests were classified. According to the classification results, Moscow currently has 30 five-star hotels, 82 four-star hotels, 212 three-star hotels, 110 two-star hotels, 46 one-star hotels and 606 no star hotels. View the chart

Moscow hotel classification, July 2017

Source: Moscow Department of Sports and Tourism.

According to the Unified Real Estate Search Engine cian.ru, there are over 40 thousand active housing rental offers in Moscow. According to the user data portal Numbeo, in July 2017 an average residential property rent in Moscow was about 815 USD for a single-room downtown apartment and about 479 USD for an uptown apartment. It is higher than Russia's average, but lower than in most megacities of the world. For example, the housing rents in London, New York or Zurich are two or three times higher than those in Moscow. View the chart

Rent index* in different cities of the world, July 2017

*The rent index is the ratio of an average residential property rent in the world to an average rent in New York.
Source: Numbeo.

Commissioning of residential buildings, million sq. m.

Source: Rosstat.

Ratio of housing prices to the disposable income of population* in different cities of the world, July 2017

* Calculated as the ratio of the median 90 sq. m. housing value to the median family disposable income per year.
Source: Numbeo.

Development of hotel networks in Moscow up until 2025

Source: Moscow hotel development schedule (as of 07.07.2017)

Moscow hotel classification, July 2017

Source: Moscow Department of Sports and Tourism

Rent index* in different cities of the world, July 2017

*The rent index is the ratio of an average residential property rent in the world to an average rent in New York.
Source: Numbeo.