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Author Topic: How is the real estate financing situation?  (Read 2771 times)

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reddin

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How is the real estate financing situation?
« on: September 13, 2010, 09:35:38 AM »
According to a survey, institutional finance was not an important source of housing finance recently. 

The role of specialized housing finance institutions was even more limited financing an insignificant proportion of the total cost of housing.  Most of the cost of housing was financed from the house builder's own resources like cash, bank deposits, savings etc.

Building a home is not an easy proposition in modern times. Coupled with this is the cost of construction labor.  The scarcity of construction labor has resulted in a steep hike in labor.
« Last Edit: September 15, 2010, 05:37:01 AM by Sennaya »

Mariria

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Financial crisis slowed bank lending in Russia
« Reply #1 on: September 13, 2010, 09:55:52 PM »
Hello Reddin, what exactly you are talking about?

During the financial crisis there wee some financing problems, but the worst seems over.

Most Russian banks stopped making loans during the crisis, while others dramatically raised interest rates.  Total outstanding housing loans fell 6.5% during the year to end-Q1 2010.  83% of these were in rubles, the remaining 17% in foreign currency.

Only 14% of homes were bought using mortgages in 2007, and 26% of purchases of newly-constructed apartments, mostly higher-end homes.  Most real estate transactions are done in cash and paid in full with US dollars. Buyers and sellers use banks simply to avoid being mugged while exchanging wads of dollar bills. Buyers reserve dollars days in advance.

Thank you.
« Last Edit: September 15, 2010, 05:37:51 AM by Sennaya »

Sennaya

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Crisis over, but recovery slow
« Reply #2 on: September 15, 2010, 05:33:50 AM »
I found an interesting article about housing prices in Russia.

"In 2009, Russia experienced the deepest recession in 15 years, with real GDP contracting by 7.9%. The economy started to recover in the second half of 2009. Then in May 2010, real GDP growth accelerated to 5.8% y-o-y, from 5.5% a month earlier. The Russian economy is projected to expand by about 4% in 2010.

As the Russian property market continues to struggle, house prices dropped 7.56% from the previous year to Q1 2010.

Despite economic recovery, house prices and rents are expected to continue falling in 2010, albeit at a slower rate than in 2009. Demand remains relatively low. Foreign investors are still very cautious and reluctant to enter the local housing market. The country’s image in terms of attracting foreign investments has become quite negative, said Nikita Yarushnikov of Wermuth Asset Management.

The recovery of the Russian housing market is likely to be tepid, with house prices projected to pick up in the next three years."

Read more:
http://www.globalpropertyguide.com/Europe/Russia
« Last Edit: September 15, 2010, 05:38:39 AM by Sennaya »

 


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