The post-Soviet decline of Moscow’s manufacturing is the real estate industry’s gain as the western fad for loft apartments grows. Attics in the capital are mostly rented out as commercial sites by different firms or shops, while in the United States and Europe they are often used for offices and apartments.
But the fledgling loft apartment market is on the march, particularly among well-off Muscovites.
Former factories
Lofts are usually located in former factories and warehouses – and developers tend to stick to an industrially minimalist design. Brick walls with no plaster, wooden floors and very high ceilings are complemented with large windows allowing lots of light to enter the apartment.
«Classic lofts are apartments converted from industrial premises like factories, but the style of the site is kept unchanged», Alexander Ziminsky, director of the elite property department at Penny Lane Realty told The Moscow News.
When lofts first appeared in the US and Europe in the early 20th century they were snapped up on the cheap by artists and sculptors due to the low cost of renovation and rental.
«The vast space allowed them to put everything they needed for creativity there and work in the comfort of the apartment», Ziminsky said. Now they are used not only as apartments, but also for creative space. In Moscow there are plenty of contemporary art centres in attics such as WinZavod.
Top trend
The most popular loft location in the capital is the former chocolate factory, Krasny Oktyabr.
In 2009 the island the factory stands on was converted into a creative cluster with showrooms, art galleries, design bureaus, nightclubs and restaurants.
The area is now one of the trendiest locations in town, and it is easy to spend a day walking round all the features.
Other loft projects are also built in former manufacturing plants and many keep the historic construction date as part of the identity – such as the Krasnaya Roza 1875 business quarter between Ulitsa Timura Frunze and Ulitsa Lva Tolstogo in the Khamovniki neighbourhood. Internet search engine Yandex has its headquarters in the area, but despite being popular with innovative commercial firms there are rarely apartments on offer.
Historic location
While there are only two traditional loft apartment projects in Moscow, imitations with the same minimalist features are also being built.
The Loft Quarter Danilovskaya Manufaktura 1867 on Varshavskoye Shosse and the Loft Residence 1869 on Dukhovsky Pereulok are in former factories near Tulskaya metro station. «In Moscow, there are several loft projects [that should interest buyers]», said Anna Levitova, managing director of Evans Property. «One of them is The Loft Residence – this is a new business district, which includes a business centre class ‘B+’ and apartments in a contemporary loft style».
She added that the project is looking at the complete renovation of the buildings, while preserving the historical appearance of the red brick façade, which makes it unique.The total area is 20,000 square metres, which is enough for big apartments and offices.The average price per square metre is $5,000, according to Pavel Logachev, head of the sales department at RED Development, which is doing up the premises.
He added that 70 per cent of the lofts there are already sold – a sign of the popularity of loft real estate. The Danilovskaya Manufaktura, located near the Loft Residence, is more expensive, costing $11,000 per square metre, says Irina Burdelnaya, the spokesperson for KR Properties, which is developing the property.
Legal restrictions
The development of authentic loft apartments has been hindered by legal restrictions on old buildings.
«It is worth noting that in Russia the conversion of lofts in a pure form from old industrial enterprises is very difficult legally because the law restricts the development of such areas», Levitova of Evans said.
Developers are trying to find ways to sell the increasingly popular properties, and some have built new apartments in the same style.The Manhattan House, Art House Residence and Nikolayevsky Dom are the three most popular new «loftstyle» blocks of apartments in Moscow.
Ziminsky, of Penny Lane, said that lofts in Moscow were the latest arrival on the market. «The first of these facilities entered the market in the late ’90s», he said. «As in the commercial real estate [market] these were adaptations – apartments in ordinary blocks decorated in an industrial style.
«The owners demolished interior walls, whitewashed ceilings, creating an imitation brick walls and sets the appropriate style furniture». Now loft-style apartments are built in business quarters, and are some of the major projects by Moscow’s top developers.
Source: The Moscow News
