Collapse of real estate investments in Russia: the latest news
Who has never wanted to explore Russia in all its majesty?
Every year there are millions of tourists who decide to visit this land so rich in history and at the same time unique from the economic but also social point of view.
After the football world of 2018, the number of visitors seems to have stopped and, even more serious, the economy in general is totally hibernated.
According to recent statistical surveys, Russia is going through a very critical period, from the economic point of view but also socially.
In particular, a sector that is suffering a lot from this adverse situation is undoubtedly the real estate sector. Real estate investment volumes reached $ 2.9 billion in 2018, a decrease of 40% compared to the previous year (which instead amounted to 4.8 billion dollars).
The results are very close to the historical low of 2015, when the economy was stalled, following a long period of recession.
The underlying cause of this result lies in the sanctions against Russia stemming from the volatility in the new main markets and the drastic fall in oil prices.
Currently, unlike in 2015, 2019 is characterized by the marked shift in the market equilibrium curve (in this case, real estate) towards the demand line. In fact, the properties on the Russian real estate market are less and less, but also foreign capital destined to invest in Russian brick is becoming scarce.
In particular, the office sector is still the only driving force of the entire system, with a total volume of 30%.
St. Petersburg continued to increase its "share" in the Russian real estate market, but with a crash of 66% compared to 78 in 2017.
While the contribution of foreign capital is still higher than in previous years, the same can not be said of national investors, who, less and less interested in buying a property in Russia, tend to converge their economic-financial resources or in other sectors or even abroad.
The forecasts for the current year also do not seem to be positive. In fact, it is expected that economic growth will remain around 1.2%, due to sanctions.
So it is feared that the maximum that investments will touch in 2019 will be 3.5 billion dollars.
Even the hotel sector, which appears to be in full crisis, since employment has fallen to 55%, has caused considerable damage to the real estate market.
In general, the whole Russian economy is based on the domestic business and on travel, leisure or business, which is why the lack of interest in these economic categories has greatly influenced the whole system.
It is hoped that the new year may be lucky for this land that unfortunately seems to have frozen all its best cards under the cold cold of Moscow.
Every year there are millions of tourists who decide to visit this land so rich in history and at the same time unique from the economic but also social point of view.
After the football world of 2018, the number of visitors seems to have stopped and, even more serious, the economy in general is totally hibernated.
According to recent statistical surveys, Russia is going through a very critical period, from the economic point of view but also socially.
In particular, a sector that is suffering a lot from this adverse situation is undoubtedly the real estate sector. Real estate investment volumes reached $ 2.9 billion in 2018, a decrease of 40% compared to the previous year (which instead amounted to 4.8 billion dollars).
The results are very close to the historical low of 2015, when the economy was stalled, following a long period of recession.
The underlying cause of this result lies in the sanctions against Russia stemming from the volatility in the new main markets and the drastic fall in oil prices.
Currently, unlike in 2015, 2019 is characterized by the marked shift in the market equilibrium curve (in this case, real estate) towards the demand line. In fact, the properties on the Russian real estate market are less and less, but also foreign capital destined to invest in Russian brick is becoming scarce.
In particular, the office sector is still the only driving force of the entire system, with a total volume of 30%.
St. Petersburg continued to increase its "share" in the Russian real estate market, but with a crash of 66% compared to 78 in 2017.
While the contribution of foreign capital is still higher than in previous years, the same can not be said of national investors, who, less and less interested in buying a property in Russia, tend to converge their economic-financial resources or in other sectors or even abroad.
The forecasts for the current year also do not seem to be positive. In fact, it is expected that economic growth will remain around 1.2%, due to sanctions.
So it is feared that the maximum that investments will touch in 2019 will be 3.5 billion dollars.
Even the hotel sector, which appears to be in full crisis, since employment has fallen to 55%, has caused considerable damage to the real estate market.
In general, the whole Russian economy is based on the domestic business and on travel, leisure or business, which is why the lack of interest in these economic categories has greatly influenced the whole system.
It is hoped that the new year may be lucky for this land that unfortunately seems to have frozen all its best cards under the cold cold of Moscow.
