Rough Times for Russian Luxury Real Estate

The Moscow Times reports today that private equity and venture capital firm O1 Group has sold its 70% share of Vesper, a luxury housing developer currently constructing $100 million worth of high-end residences in central Moscow. O1 Group’s move is seen as a response to declining demand in Russia’s prime property market. More: Global Divide on House Prices Not a single new-construction apartment has sold in Ostozhenka, Moscow’s “most prestigious” district, since the start of the year, according to a report from real estate firm IntermarkSavills. Furthermore, Kalinka real estate company found that the average price of luxury apartments in Moscow has fallen from $22,000 per square meter to $17,350 per square meter in the first half of 2015. [The Moscow Times]