RRG: The rising price of real estate in Moscow stopped

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At the Moscow real estate market has come to stabilize, experts consultancy Russian Research Group (RRG). In the segment of housing “economy class” price begun to fall, albeit slightly. The main reason – a significant increase in supply and decrease the activity of buyers “investment” flats, writes “Nezavisimaya Gazeta”.

“Today we can say with certainty that a marked reduction in early October, the cost per square meter was not an accident, and the forecasts of the near stabilization made in the middle of summer, are justified,” said representatives of the RRG. According to monitoring by specialists, as of October 2006, the cost of a square meter of “economy class” fell by 0.2% and is now an average of 4025 dollars.

Analysts explain the decline in the price dynamics steady increase in supply in the first month of autumn. Thus, by the beginning of October, the number of apartments for sale as compared to August increased by almost 40%. Now in the Moscow market sold 24,000 flats which, according to experts, are many. Is the number of objects mentioned in the last time in the spring of 2004, a period of stagnation in the market.

“A month ago, a rapid increase in supply was due to declining interest of citizens to investment purchases, which in the spring and summer is to 4050% of transactions. Today, we are talking about entering the market is still a small amount of” investment “apartments, extended exposure and how consequence of possible stagnation, “says CEO Dennis RRG Kolokolnikov.

The specialists note that October in the residential market was a “turning point” month. “If at the end of September, house prices continued to rise by 1% per week, and even more, by the end of October, the growth rate of prices have fallen at least twice. Moreover, almost all market participants now agree: prices actually stopped a formal increase which still reflects the statistics, is already more residual in nature, “says the head of the website IRN.RU Oleg Repchenko. According to him, the market has a number of clearly overpriced apartments, the cost of which was prescribed “for growth”, subject to an excessive rise in prices, and these prices are now starting to be adjusted downward. While another part of the apartments for adequate prices simply became more expensive, and some of the apartments are still going up, for example, quality housing or apartments in prestigious areas.