Sberbank of Russia : and MOEX start to calculate Moscow residential real estate index

Sberbank and Moscow Exchange (MOEX) have started calculating and publishing the Moscow Residential Real Estate Index. The index is calculated based on data of DomClick, part of Sberbank ecosystem, on Sberbank real mortgage transactions. DomClick Price Analysis service uses the same data, which helps customers determine the market value of an apartment before selling or buying it.

• The index value is defined as the weighted average cost per square meter of residential real estate in the administrative districts of Moscow.
• Apartments in multi-story buildings are included in the index. The index does not include luxury real estate (worth more than RUB 30 mln) in order to avoid misrepresentation of the residential real estate cost.
• The index retrospective will cover data since late 2016, the index value was RUB 159,647 per square meter as of December 28, 2016 and RUB 188,578 as of August 5, 2020.

The index is calculated on a weekly basis, and the index base will be reviewed once a quarter. The index trade code is MREDC.

The methodology, as well as changes and additions to it, are developed taking into account the recommendations of the real estate market expert council which consists of representatives of MOEX, Sberbank, DomClick, DOM.RF, the Lomonosov Moscow State University and the Financial University under the Government of the Russian Federation.

Sberbank and MOEX took into account international experience, in particular approaches used to calculate the Standard & Poor's Case-Shiller House Price Indices, National Council of Real Estate Investment Fiduciaries Property Index, MSCI IPD UK Annual Property Index when creating the real estate index. At the same time, the special characteristics of the Russian real estate market were taken into account as much as possible.

Vladimir Yarovoy, Senior Managing Director, Head of the E-Markets Division, Sberbank,

'Combination of Sberbank and MOEX capabilities and competencies enables us to create useful and popular index products for a wide range of investors. I think that the Moscow Residential Real Estate Index will become an indicator of business activity in one of the most important consumer markets and will help make it more convenient and predictable for buyers. Due to the fact that the index is based on real transactions and updated weekly, market participants will have a reliable analysis tool when investing in real estate.'

Igor Marich, representative of Moscow Exchange,

'The real estate index that we developed together with Sberbank is unique. It is the only real estate market indicator in Russia that is calculated based on real transactions. We hope that this index will become a recognized metric of the residential real estate cost in Moscow. In the future, we can offer the market futures based on the new indicator. They enable investment funds and private investors to implement strategies aimed to make a profit from changes in real estate prices. Developers, in their turn, will be able to use futures to hedge market risks, and financial companies will be able to create new structural products that will help private investors make saving for real estate or for a mortgage down payment.'

Alexey Leypi, Managing Director, DomClick,

'Price Analysis is a unique online service for evaluating the cost of apartments, based on real mortgage transactions at Sberbank. It helps determine the apartment's optimal price both for buyers and sellers. The algorithm compares apartments by more than 40 parameters, and also takes into account trends in the real estate value, which enables us to speak about its accuracy. At the same time, we have a sample for in-depth analysis, as Sberbank has a significant mortgage transaction share in Russia. A joint project of DomClick and MOEX was a logical stage of the product development. In the future, it will enable you to build analytics on the residential real estate market and monitor changes in it based on this data.'