Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Summertime Exodus Even Bigger This Year

Seasonal trends can produce major shifts on the real estate market. By the end of June, dacha rentals have reached their peak, so the beginning of July is the right time to review changes in the suburban market.

This year demand has been especially high; it would not be an exaggeration to say 98 percent of acceptable country houses have already been booked for the rest of the summer. Demand for short-term leases on dachas grew by 10 percent this spring. At the top end of the market -- where budgets are more than $7,000 per month -- demand for long-term rentals continues to exceed supply, despite a growing number of well-managed so-called cottage compounds as well as private properties.

In July and August, the market is expected to calm down, with few good suburban properties becoming available. But this September, at the start of the autumn, many summer tenants will vacate their houses. When the exodus reaches its highest point in October, potential renters have a good chance of leasing a country house that suits them.

The suburban market has been developing very rapidly, especially since 2000. The most elite area in the Moscow region -- off the Rublyovo-Uspenskoye Shosse -- shows that there is serious interest in developing country properties. This year, demand for properties worth more than $1 million grew to almost three times that of last year.

Forested land is also in great demand, and prices have soared for the last two years. For example, the cost of elite land plots in such places as Nikolina Gora has doubled in the last year. In some compounds in Barvikha and Arkhangelskoye, prices for 100 square meters of land with pine trees can reach $25,000 to $30,000.

Prices are even higher inside Moscow. At Serebryany Bor, the price of land for long-term lease -- there is as yet no private ownership for land in the city of Moscow -- reaches $50,000 per 100 square meters.

As mentioned, construction activity is very high in the Moscow region, which reflects the current trend of serious investments made in suburban developments by major local players. Foreign investors may be behind certain developments, but so far, these have been small-scale projects.

Large investments in cottage developments will reign for at least two or three years, as the market is seriously undersupplied with high-quality country housing.

Yevgeny Ivanov is managing director of USADBA property consultants.