The real estate market: a price shock

Individual real estate market participants argue that the decline in demand for apartments for the year amounted to 30-40%. For all this they resemble: from December 2006 the average price of a two-room apartment in Minsk grew from 1,200 dollars per square meter to 1,700 dollars at end-March 2007. Please illumine prices exceeded 2000 dollars per square meter.
One room fell by at least 10 thousand dollars
As confirmed by the chairman of the Belarusian Society of Appraisers Nikolay Trifonov, under the new rules the real estate market has been in the last few months:
"With regard to the characteristics of any interest, then this case complex. It is only "Colgate" can find the percentage of toothpaste cleans better than any other. Of course, that some agencies work the same way. But the fact that the recession is, it does not cause vibrations. And this recession has been going on for several months. "
As the owners of real estate, keep the old prices for apartments in luxury developments and homes in the city center.
But on the other options the demand has dropped significantly. As a realtor told the 1st of the metropolitan agencies Skurko Tatiana, in the past two or three months, prices for one-bedroom apartments fell by an average of 10-12 thousand dollars, three-room — over 20 thousand:
"Lud quite active. Very hard to implement an apartment in town, especially one-bedroom apartment. Likely, this is due to the highest prices. At the moment, actually those who, though a little on the price drop.
Even in the same price category sold the apartment where the owners make concessions, which must indeed urgently implement. All other options are very forever "hang". This is really a big problem, because of this a lot of Realtors currently without funds. Because people hunt to implement expensive and they do not wish to accept the fact what you need to yield. "
Reporter: "The apartments, which are considered average based on 2000 dollars per square meter, are available now?"
"Is depending on the area. I can imagine in those areas where something is sold. For example, in the neighborhood," Shabana "is already here and 1800 dollars per square meter apartments are. Other — where as. But based on 2000 dollars — at the moment it is very not a bad apartment be "- Says Tatiana Skurko.
Consumer demand switched to the suburbs
According to my companion, presently housing market in Belarus offers oversaturated with inflated prices. Who wish to previously purchased for a reasonable cost, the funds already invested. Much of the same potential buyers simply do not have time for rising property prices.
And at the moment the agency take on contract only those apartments whose owners offer a real and not of cosmic value. Otherwise inadequate offer "hangs" for several months.
In this regard, a reorientation of the real estate market. Buyers are increasingly getting housing in the suburbs. Thus, in the near Minsk Samokhvalovichy bedroom apartment can be purchased for 50 thousand dollars.
Activity in the new criteria have led to the work of a number of real estate companies became unprofitable. Most of the agencies was unemployed, and 6 offices in Minsk and Grodno temporarily stopped operations due to lack of buyers.
But drop in real estate prices, many experts believe temporary, predicting demand return after the New Year.
On the other hand, the downward trend in real estate prices is characteristic for many regions of the world. So, after years of growth rates for houses and apartments in Europe began to fall at a rate that is measured in double digits. General prerequisites for both the U.S. and Europe: the highest interest rates and more stringent lending standards.

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