Developer: It is not the right time to leave the real estate segment
There are no serious features of influence of the financial crisis in Chuvashia, that fundamentally differ from other regions, mainly problems of Chuvashia in this crisis are typical for regions with similar economic potential, declared Nikolai Solovyev, the head of Volga-Development investment company, while commenting to REGNUM on consequences of the global financial crisis.
According to him, first signs of possible crisis appeared as early as last year, when financing of the mortgage programs and credits on real estate started to be suspended in some small banks. “Now such reduction, certainly, will influence negatively the plans of residential real estate builders, especially in the segments of mass construction and construction of economy-class houses,” said Solovyev.
In other segments, complication of access to credit resources for constructors has also become a problem, and here the specific of Chuvashia is that its companies, unfortunately, are small, and many of them might well fail in surviving through the crisis, selling out their assets. It will be an unpleasant moment for the republic’s economy. But companies with good projects will meet the crisis, and find another ways of projects financing.
Speaking about possible reduction of prices, he stressed that urged sales can have impact on their pack. Constructors are facing a shortage of facilities for financing of the short-term obligations and are forced to accelerate sales by discounts. These sales can be interesting for investors in a two-four years prospect. The general situation is that now it is not the right time to ‘leave’ the real estate and not to hurry to sell, especially in the light of the stepping up inflation, considers the head of Volga-Development.
”A stage of market generation in the segment of commercial real estate is registered now and it is too early to talk about its crisis in Chuvashia. Designed projects will be finished without any problems, and new ones, probably, first of all will be the subject of serious risks analysis. It is certainly impossible to affirm that there are no fears for investors at all. But fundamentally, the economic growth rate, growth of the consumer industry, of small businesses, the richness for growth of the market are auspicious. It is important to understand prospects of these positive factors”.
10:34 09/29/2008
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