Moscow Real Estate Market Victory Bulls
The number of real estate in Moscow is now about half that before the crisis. A situation where waiting for both sellers and buyers. Sellers are waiting for a rise in price of real estate (bull market), and buyers further reduce the cost of her (bear market). Moreover, both sides have legitimate reasons for their expectations. How the situation will continue – today nobody can predict. A year ago the price per square meter in Moscow peaked – for example, in new brick houses exceeded $ 5500! Today the Russian government in the face of the First Vice-Prime Minister Igor Shuvalov defines “fair” price per square meter in Moscow in the “funny” 30 thousand.
Moscow Department of Economic Policy and Development states that “fair” price per square meter of residential space in the capital city of 75-85 thousand rubles. Meanwhile, the ruble exchange rate of one square meter housing in its fall already “exchanged” 115 000 rubles. Something similar was observed in the Moscow real estate market after the 1998 default – when the price of apartments fell by 35%. Now fall in the price per square meter to 25% On overseas, but the crisis in the construction continues, and it seems that this is not the bottom. Demand for new housing in the metropolitan crisis declined in five (!) Times, while sales in the secondary market as compared to pre-crisis times fell nearly tripled. So price per square meter is now on such sales is quite high. The government deliberately reduce the rate on your mortgage (now the average rate of 18%). Central Bank of Russia refinancing rate has been steadily declining (Recently reduced to 9%), and, as you know, all interest rates among themselves interrelated, so, no doubt, soon the interest rate on your mortgage also expects reduction, which will increase the demand for real estate market. Who the same will prevail in the price of Moscow real estate market in the coming months, the bulls or the bears?
San Jose Time