Moscow apartment sales surge as rouble crashes

Moscow

APARTMENT sales in Moscow jumped by a nearly a third last month as Russians rushed to protect their money as the rouble crashed, according to official data.

The federal service for property registration, or Rosreestr, said on Tuesday that a total of 14,801 sales of already built apartments, the so-called secondary market, were agreed in Moscow in March, up 31 per cent from February and an increase of 13 per cent from a year earlier.

The rouble hit a four-year low last month after the collapse of a global oil deal sent oil prices into a tailspin and amid overall risk aversion as the coronavirus spread worldwide.

"Buyers sought to buy real estate amid currency fluctuations," Igor Maydanov, head of Rosreestr's Moscow office, said in a statement.

The capital Moscow, with nearly 13 million inhabitants, is Russia's top real estate market.

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Sergei Bessonov, the vice-president of Russia's biggest bank Sberbank, one of the top players in mortgage lending, said the secondary market provided more security for investing funds as flats are finished and ready to be inhabited.

On the primary market where property is still under construction, deals rose in March by around 13 per cent from February, said Mr Bessonov.

Maria Litinetskaya, managing partner at Metrium, one of the biggest real estate companies in Moscow, said that people also feared the rouble's fall would trigger an increase in mortgage rates and wanted to buy property before that happened.

The Russian central bank has kept its key interest rate on hold at 6 per cent so far during the coronavirus crisis and has offered a number of support measures to banks to try to shield the mortgage market and borrowers.

Ms Litinetskaya expects the number of real estate deals will drop sharply this month as Russians were ordered to stay at home to try and contain the virus.

Russia recorded over 20,000 coronavirus cases and 95 deaths as of April 13, with the bulk of those numbers in Moscow. REUTERS