Etalon Group - Expanding Portfolio for Robust Growth
B 1Grou
Focus on Key Markets - Moscow and St. Petersburg Metropolitan Areas
MMA and SPMA are the most attractive residential markets in Russia
MMA & SPMA - most
populated Russian regions...
Total: 142mn (4)
22mn
with growing demand for
residential real estate
Population growth/ (decline)
in 2007-2010 (4)
85%
12%
1.3%
0.6%
(0.4%)
■MMA ■ SPMA
Other
MMA
SPMA
Other
Potential demand estimation (ths. households)
Total # of households
in target markets
US$3-6 ths.
per HH per
month
Households with
income within target
price-range (1
(1)
1,852
(7)
60%
MMA
SPMA
6,300
1,700
8,000
Residential real estate commissioning in Russia
Households planning
to improve living
1,111
Satisfied
households
conditions
By value in US$ (2010) (5), (6)
By volume in ths.sqm (2010) (5)
(8)
56%
35%
53%
13%
Total: US$48bn
72%
20%
8%
Total: 33mn sqm
■MMA
■ SPMA
■Rest of Russia
Source: Rosstat
Lower
income
Higher
income
Households with
preference for primary 622
market
Secondary
preference
Indicative potential market (3)
Regional
demand
622+
Investment
demand
The above set of simple assumptions further supports the existence
of significant unsatisfied demand for value-added housing in MMA and SPMA
(1) Company estimates based on Rosstat's methodology and data; includes additional demand from mortgage users - share of sales with mortgage in total sales is 12%, according to MER (assuming no overlap
between mortgage and instalments customers); (2) 1H2010 new supply volume of Middle Class residential properties on the primary market, according to MIAN and SPb Realty, converted from sqm into housing
units, assuming that 1 flat = 85.3 sqm (average flat size in Russia in 2009, Rosstat)); (3) The demand structure shown on the pie chart is for indicative purposes; (4) Rosstat data as of January 2010; (5) Residential
real estate commissioning, excluding individual construction; (6) Calculated as residential real estate commissioning volume in 2009 (excluding individual construction) multiplied by average real estate RUR prices on
the primary market in 2009 and divided by end of period official CBR RUR/US$ exchange rate in 2010 (RUR/US$ 30.5); (7) 60% of households plan to improve living conditions (source - Rosstat; Comcon, 2010); (8)
56% of consumers prefer primary vs. secondary residential real estate market (Source -Metrinfo survey in Moscow, 1H 2010)
→ Etalon Group
7View entire presentation