In recent years, developers’ investments in creating public spaces in housing projects have increased 4-5 times over - this was the business response to the growing request of buyers of residential real estate. This opinion was expressed today by Alexander Nikolaev, the President of INTECO, in the framework of the Forum "City. Person. Future", organized by Forbes.
The business event was attended by heads of the capital leading development companies, representatives of the Russian Ministry of Construction and other experts of the market. The speakers discussed the key vectors of the residential real estate market development, as well as the companies' development strategies in conditions of changing demands of potential buyers of apartment.
Increased competition in residential real estate market today stimulates constructors to develop projects integrally, by creating a comfortable urban environment. At the same time, the interests and decisions of city authorities in respect of the quality of residential spaces have become more progressive and advanced. The city has succeeded in ensuring comfort and safety, accessibility of educational, transport and social infrastructure. As a result, the interests of the city and developers actually coincided.
"While less than 1% of the cost was dedicated to creating public spaces previously, it is reaching 4-5% today. This is billions of rubles. It seems to be a non-refundable investment, but on the other hand, it is the way to sell the product. Moreover, I consider investing in residential environment to be an absolute necessity should you really want to get the return from the buyers," said Alexander Nikolaev, the President of INTECO.
High sensitivity of citizens' incomes to economic shakes has changed the developers’ approach. Limited purchase request has become as demanding as possible within its budget. At the same time, the growth of cost of qualitative environment combined with the pressure of demand today may lead to a change in the approach of developers to planning and improvement of residential landscape. Limited purchasing power motivates buyers to look for the best option within the available budget or to postpone the purchase.
"Reducing demand does not mean there is no demand. Remaining buyers on the market are looking for best option for the minimum cost or for the most adequate value for money. A good project has a better chance to be sold," Alexander Nikolaev concluded.