A sharp slump of the Russian real estate market may well occur in near future, representatives of Mirax Group, the Russian leading developer, said yesterday. However, the developers believe they can stand a short-term 25% drop of prices.
Mirax Group’s recipe to survive under crisis conditions is no to take loans and freeze the major part of projects. The company’s profits are still quite high - $170-190 million, while manufacturing expenses do not exceed $120 million.
Long-term the company is likely to face serious problems, since the number of men of means capable of purchasing real estate may decrease.
