Experts: Russian housing market enters cooling phase
The Russian real estate market is currently entering a cooling phase, during which a drop in demand and a decline in prices for new buildings are expected. This is reported by RIA News with reference to experts.
According to Oleg Repchenko, head of the analytical center “Real Estate Market Indicators IRN.Ru”, the market is currently “not that bad”. At the same time, according to him, it is currently overheated and unbalanced due to the excessively long duration of preferential mortgage programs. “In fact, the market has become hooked on the preferential needle, and now these benefits are being cut,” he explained.
The specialist specified that the current situation on the Russian real estate market cannot be compared with crises in other countries, for example, in China. In this country, there is rather a crisis of overproduction, and against the backdrop of the emerging economic downturn, the question of selling the volume of construction arises.
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The drop in sales may amount to an average of 30-40 percent, believes Elena Chegodaeva, head of the analytics and consulting department at NDV Real Estate Supermarket. Prices for housing in new buildings may decrease by 5-7 percent by the end of the year, predicted Pavel Lutsenko, CEO of Mir Kvartir. If the key rate remains high for a long time, prices may fall by 20 percent or more, says Irina Nosova, senior director of the financial institutions ratings group at ACRA.
Earlier, economist Denis Raksha advised Russians not to expect a reduction in mortgage rates in the near future. According to him, the market is on an upward trend in the key rate.
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