Saturday, March 22, 2008

Real estate perspectives for the region of Moscow in 2008

As the most fundamental obstacles for real estate in the Moscow region, Voronin identified bureaucracy and the physical scarcity of building materials. Although the production of materials is actively developing, he does not expect to see a breakthrough in the next five years.

As a recommendation to private real estate investors in the region, Voronin remarked that currently economy class residential space remains the most liquid with nevertheless a high potential for growth. However, he noted, "A more interesting idea is investment in "gated communities". According to Voronin, these communities carry with them a higher margin of profitability, but their attractiveness depends on the length of the desired commitment, as they are less liquid.

Russian Properties News