Property Becoming Cheaper

2009 for the Russian Federation, despite the optimism prevailing in the central channels of TV, was negative. Production fell by more than 13% decline in GDP of power is still less than the promised 9%, but even this value is fatal to economic laws which recognize only increase. Unemployment is rising: in October of unemployed increased by 400 thousand people. Services of natural monopolies continue to grow the planned rate: gas and electricity Expensive, although the dynamics of world prices and demand change. With the reduction in income and inflation is increasing prices for utility services, electricity and gas-finish budget average for the family.

Citizens begin to save money on food. Against the background of the devastation dealt to the assurances of realtors and representatives of construction companies that the housing market bottom has been reached again and apartments can be viewed as an investment. These findings built on the simple fact that demand and housing prices started to rise in the autumn of 2009. But they also persistently overlook egregious set of facts to the contrary. For example, that the lease of commercial real estate has fallen in price in two or three. The size of rental property – one of the tools for assessing the price of the property.

If the rent falls three times, the price of real estate is reduced proportionally. And the real situation is that the price dropped much smaller, which means that there is no fundamental prerequisites for increasing the value of the property, so as much more profitable to rent what is rather than trying to build. In general, the key to growth property value is the number and value of money, but here the full blockage.