The once-red-hot real-estate sector has become one of the first major areas of Russia's economy to feel the chill of the global financial crisis, executives say. Banks have stopped lending, prompting developers to shelve new projects and ditch plans to list on domestic and international markets.
Developers and analysts say they expect intense industry consolidation in the months ahead, along with a fall in prices from what have been dizzying heights. Moscow real-estate prices have jumped nearly 30% this year, with average residential prices hovering at just below $5,000 a square meter, after tripling in the past three years.
