Focus on Upper economy, Comfort, and Business Classes
Best-in-class housing for Russia’s growing middle class
We are focused on three segments of the residential real estate market: upper economy, comfort, and business, as they address 60-70% of potential housing demand. We do not work in the elite sector, as potential for growth is limited due to limited demand. We also avoid the economy sector, since using brick-monolithic construction techniques will result in lower profitability due to low prices for economy-class housing. The lower-economy segment is also the least resilient to macroeconomic fluctuations, which contradicts our goal of continued, sustainable increases in market share and sales of real estate while maintaining high returns on capital.
Declining mortgage rates will be a key driver of demand in our target segments, and we expect significant growth in the coming years. In anticipation of these changes, we are improving our product in order to provide our customers with contemporary housing solutions, while maintaining accessible pricing in line with each segment, and providing for solid financial performance.