Cheaper Real Estate

2009 for the Russian Federation, despite the optimism prevailing in the central tv channels, was negative. Production fell by more than 13% decline in gdp authorities are not yet promise less than 9%, but even this value is fatal to economy, laws that recognize only the growth. Unemployment is rising: in October the army of unemployed increased by 400 thousand people. Services of natural monopolies continue to grow the planned pace: Gas and electricity to rise, despite the dynamics of world prices and demand change. With the reduction in income and inflation is increasing prices for utility services, electricity and gas, is finishing off the national average family budget. Citizens begin to save money on food. The background of the devastation dealt to the assurances of realtors and representatives of construction companies that the bottom of the housing market has been achieved and the apartment again, can be regarded as an investment. These conclusions are built on the simple fact that demand and housing prices started to rise in the autumn of 2009.

But they stubbornly refuse to notice a lot of glaring facts to the contrary. For example, that the lease of commercial property has fallen in price in two or three times. Size rental property – one of the tools to assess the price of the property. If the rent falls three times, then the price of real estate is reduced proportionally. And the real situation is that the price dropped significantly less, which means that there is no fundamental prerequisites for increasing the value of the property as far more profitable to rent what is rather than trying to build. In general, the key to growth real estate value is the number and value of money, but even here a full blockage.