The scandal around the South Butovo can turn a new rise in prices for Moscow apartments

The scandal around the South Butovo can turn a new rise in prices for Moscow apartments

“Building scandal” around the resettlement villages in South Butovo can cross all hope the slowdown in real estate prices in Moscow.

When experts attempt to explain the rise in house prices and predict their future behavior, they tend to analyze the so-called fundamentals. These are objective facts – such as, for example, the volume of demand and the available supply in the market, performance of cement and changes in mortgage interest rates. But sometimes it seems that the expert calculations something missing. The fact that the Moscow real estate market from a simple “market supply and demand” has become a speculative market. And that market is focused on anything other than an objective assessment of the fundamental factors emphasize the “new news”.

It is known that any speculative market lives emotions. Any good businessman always watching the news. But in the speculative market, any news expanded to universal scale and is used as an excuse to play for high stakes. Therefore, should the president of Venezuela, Hugo Chavez to make another bizarre attack on the United States or a simple Nigerian rebel palnut into the air from a “Kalashnikov” – and the price of oil could easily jump on a couple of percent.

The newspaper said that in the Moscow real estate market for a long time does not run the show apartment buyers “for themselves” and speculators. According to estimates of Realtors, now only about a third of transactions for the purchase of housing is carried out using a mortgage. Todays middle class, with a salary of $ 1,000 or even $ 5,000 per month can not afford to buy an apartment in another manner. Meanwhile, the middle class is the main buyer of housing “for life.” Who is willing to pay a lot of money “on the spot” by purchasing the remaining 70% of the apartments? Of course, there are rich buyers who really need luxury housing to live in it. But the largest share of the market is investors, for which Moscow apartments – no more than a way of investing money.

By the way, recently the Russian stock market dipped severely. Investors and mutual funds have significant losses, say “Novye Izvestia”. Conservation and, “if were lucky,” continued rapid growth in real estate prices in Moscow – it is perhaps the last chance for many speculative investors “do not go into the negative.” For them, death is like any of the Moscow authorities to increase the construction and commissioning of large amounts of mass housing.

No surprise that the controversy surrounding the demolition of the village in South Butovo immediately forced experts “think” about the lack of land in Moscow, and assuming that the average price of Moscow real estate may soon soar to 5000 dollars. Investors, speculators rather rub the handle and have something. Sites for housing construction in the capital, there are not so many, and Butovo – one of the biggest. It is planned to build hundreds of thousands of meters of new housing, including social. Any negative news regarding this building, of course, the real estate market heats up, pushes it to a new spiral of prices. According to experts, only a week the media coverage of the conflict in the price of land in Butovo jumped by 50%.