The real estate market has varied in price range in recent years. The decline in prices for buildings in 2020 has become obvious and critical for the real estate business. Several facts influenced this situation.
The situation with the real estate market in Russia
There are very few large companies involved in the sale of housing and commercial real estate. Lately, only small real estate offices have been opening. The absence of a bill to regulate the activities of such private offices only fuels the situation.
It is quite difficult for new companies to remain competitive. This is partly due to the bureaucratic quality of the Russian real estate market. Constant training of realtors and trainings are not fueled by team spirit. In this business, the priority place is for the “lone specialist”. All this indirectly affects pricing.
Another factor influencing the instability of the real estate market is the obvious fact of mandatory licensing for the dismantling of buildings. It should be noted that the rise in real estate prices is due to pipes, which have become waste of the fourth category. Control services are trying to correct the situation with innovations.
Analysts’ forecast for 2021
Experts believe that the instability of the pandemic situation in 2021 is leading to lower prices for new buildings. This will happen if the situation worsens and new restrictions are introduced.
Sharp jumps in pricing are excluded, experts say. Otherwise, the crisis would lead to the bankruptcy of most real estate companies, and this is unacceptable.
Entrepreneurs themselves make plans and present the situation in positive colors. An expert in this field, Leonid Rysev, refers to the expectations of the election results in America. This is necessary, the expert believes, to fully understand the real estate situation.
Foreign businessmen have direct connections with Russian companies. They still invest a lot in stocks, startups, etc. It is also planned to work with real estate abroad and expand online projects for realtors.
Several assumptions regarding the real estate situation in the summer of 2021:
– decrease in income of the population (no more than 13%);
– increase in the cost of suburban real estate;
– difficulties for travelers;
– reduction in mortgage interest (as support from the authorities);
– an increase in the inflation rate in Russia (will lead to an increase in prices for new buildings).
Absence of a sharp jump in prices for the purchase of new housing (within the limits of a smooth increase in inflation).
The reduction in prices for secondary goods is due to the lack of a competent body regulating prices. The position of purchasing new buildings compared to purchasing secondary housing will come to naught.
The main criterion in choosing objects when purchasing real estate will be a high-quality structure. This will lead to increased requirements for developers. The expansion of the area of country real estate sales is obvious.