Tuesday, September 30, 2008

Moscow super-rich pour millions into luxury homes

MOSCOW (Reuters) - The world outside may be in the thralls of crisis, with house prices plunging, markets slumping and banks collapsing; but Russia's cocooned super-rich can still spare 2.5 billion roubles ($99 million) for a Moscow townhouse apartment within strolling distance of the Kremlin.

Spurred by petrodollars and booming consumer confidence, Moscow's real estate - where sky high prices can outpace Manhattan and London - has so far avoided following the local stockmarket's downward spiral, which continued on Tuesday.

Property agency Agent 002 said last Friday an unnamed buyer had splashed out on the seven-storey 1,300 square metre apartment near the Kursk railway station.

"For Moscow, it's an absolute record," said Agent 002's spokesman Ruslan Barabash.

Russian Properties News