Pros and cons of one of the promising investments in the Moscow real estate market
Six years have passed since the start of the renovation program in Moscow, which provides for the demolition and resettlement of 5.2 thousand houses. But until now, the purchase of housing in the Khrushchevs that have fallen into the program attracts many investors. When moving through renovation, the owner of the apartment receives an increase in the area and in the cost of a square meter. meters. However, there are also enough nuances. The experts of the Elite.ru portal have identified the main pros and cons for those who want to get an apartment in a new building for less money. The article uses data from Cyan.Analytics and Metrium.
The closer the move, the less choice
The supply of such housing is decreasing, especially for options with the prospect of an early move. 1.5 thousand apartments are put up for sale in houses that are under renovation. Only 4% of them, or less than 100 lots, are sold in Khrushchev houses, which are planned to be moved in the first wave of resettlement. It started in 2020 and will end in 2024. Buildings with resettlement in 2025-2028 account for 30%, and the largest share – 66% – remains in the houses of the third wave of resettlement, which will take place in 2029-2032. At the same time, the inclusion of a house in the renovation program does not mean a quick resettlement, even if the deadlines have already been specified. As of June 2023, only 757 houses have been settled. The program continues to be coordinated and discussed, and they may even decide to suspend or freeze, say, due to insufficient funding. This may well happen with the houses of the second and even more so the third waves of resettlement. And if there is no other apartment, then before the resettlement, you will have to live in an old house in which there is no point in making expensive repairs – no one will cover the costs.
Rich past
“The process of choosing an apartment on the secondary market must be approached with the utmost caution,” says Nadezhda Korkka, managing partner of Metrium. According to her, there should be no hidden tenants who can then claim housing, illegal redevelopment, encumbrances, otherwise the whole meaning of the chain “bought the old for the sake of getting the new” is lost. The risks are multiplied precisely in Soviet houses with a rich history due to the frequent change of owners and improperly conducted privatization. In addition, it will not be easy to buy an apartment for renovation in a mortgage. Banks are reluctant to issue loans for objects with a high depreciation process. There may also be problems with the use of mother capital: it cannot be used to purchase real estate in dilapidated and dilapidated houses. Many buildings that have been renovated have just such a status.
The increase in area is almost a third
Apartments in new buildings are on average 32% larger in size than in Khrushchevs. This is mainly due to the increase in non-residential areas: the average kitchen area is 68% higher. Having bought a room in a communal apartment, you can get a one-room apartment instead. Owners of one-room apartments will receive an additional 8.5 sq. meters, two-room – 13.2 square meters. meters, and three-room -17.3 square meters. meters. You can also pay extra and get a larger apartment.
Value addition – 19%
The average price of housing for renovation is 272 thousand rubles per sq. m. meter, in a new house – 322.7 thousand rubles. That is, from moving to a new house, the owner wins almost a fifth of the cost of a square meter. meters – 19%. In different areas, the gap between the cost of a “square” in Khrushchev and new houses under the renovation program varies from 3% to 36%. It should also be taken into account that prices in houses of the first wave are significantly higher: an average of 294.8 thousand rubles per sq. m. meter. This is 1.8% more than in Khrushchev houses of the second wave (289.6 thousand rubles), and immediately 12% higher than in the houses of the third wave (263 thousand rubles).
No information about the house
Usually the buyer wants to get the most complete information about the future apartment. However, according to the head of the Cian analytical center Alexei Popov, investments in Khrushchev are difficult to predict investments regarding the future layout, address, view from the window, floor and other things. They may offer an option that does not suit immediately in many respects, or monetary compensation, the amount of which is far from the average market rate. Moreover, for New Moscow and Zelenograd there is a decree according to which the resettlement is carried out not within the district, but within the whole district. That is, it may well be an unfortunate place away from developed infrastructure.
Finished finishes
Other benefits include: Finished finishes, plumbing and stove installed, chandeliers, fixtures, sockets and switches. The yards are landscaped, they provide playgrounds and exercise equipment. But not all migrants who have been renovated are satisfied with the housing they have received. Most often, residents are faced with poor-quality installation of windows, interior doors (slits, curvature, improper fitting of trim, leaky closing), poor-quality soldering of pipes in bathrooms. Many also point out poor soundproofing. If you are going to move to such a house, keep in mind that you will most likely have to finish a lot of things yourself.
Investing in an old fund with the prospect of moving to a new house may well turn out to be beneficial for both those who choose an apartment for themselves and investors. But only taking into account all the features, which, as it turned out, are enough.
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