Real estate in Russia to grow by 9% more
“Relying on our target prediction of real estate dynamics, we suppose that prices in 2008 will be stabilized and will not grow dramatically, as it happened in 2007 — by 20% compared to the previous year,” said the president of the Institute of the City Economy fund Nadedhzda Kosareva, informs Apartments.ru. According to her, no real price drop is forecast. In 2008, the prices will rise by 9% comparing to the previous year, in 2010, by 5% compared to the previous year, and in 2015, by 1,5% comparing to the previous year.
”There is one more interesting index of development of the mortgage credit in our country that can be mentioned, it is the share of debt on mortgage credits in percentage ratio to the GDP. According to our forecasts, in 2007 this figure was 2.1%, in 2008 it will grow up to 3.8%, in 2010 — to 7.1%, and by 2015 — to 15.8%,” Kosareva noted.
She also stressed, that credits range in 2007 had been 556 billion rubles with the general volume of debts 700 billion rubles. In 2008, the credits range and volume of debts will be 774 billion rubles and 1.3 trillion rubles accordingly. In 2010, those figures will change to 1.1 trillion rubles and 2.7 trillion rubles accordingly. According to Kosareva, in 2015, the credits volume will be 2.4 trillion rubles, and the general volume of debt on mortgage credits will reach almost 8.4 trillion rubles.
“Our estimation is, by the end of 2007 the share of deals in percents from the real estate market on mortgage credits was 17%. Under our predictions on 2008, 2010, 2015 and 2020 years, this index will grow to 20.3%, 26.9%, 43.5% and 60% accordingly,” Kosareva concluded. According to her, average interest rate in 2007 was 12.6%, in 2008 this figure will not change, but in 2010 and in 2015 it will reach a mark of 9% and 6 % accordingly.
10:26 05/17/2008
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