The housing market: most affected business class

Nedvizhimost28-05-2009 The housing market: most affected business class is currently the real estate market is experiencing a difficult phase in its development. Crisis affects all segments of the housing, however, in a luxury and economy class there are factors that act as a buffer, mitigating this effect. The main shock took over the most dependent on credit business class, analysts said the consulting company Blackwood, who recently conducted a market study of residential real estate business class in Moscow. As explained in an interview Bigness.ru Managing Partner at Blackwood Kovalev, business class was the most vulnerable also because of the magnitude of the projects and the greatest dependence on credit as opposed to an elite segment and a lack of government support, in contrast to the segment of economy class. According to our interlocutor, in a crisis builders business class first announced the freezing of promising projects and to offer discounts greater than in other segments of the housing. Moreover, most depreciating during the crisis new buildings in Moscow are just a segment of the business class. As of March 2009 the average price for new construction of business-class totaled 205.2 thousand rubles. per square. m ($ 6.5 thousand for 1 square. m). However, slightly more than 3 years ago the figure was at 83.5 thousand rubles. per square. m ($ 2.9 thousand for 1 square. m).