Just a few months ago, Moscow’s urban skyline was lined with revolving construction cranes. Today, the influx of capital into real-estate has come to a halt. Ekaterina Thain, from Knight Frank expects a sharp downturn.
“Most of the developers have huge borrowings from the banks, so they have to pay the money back. So if they want or don’t want they have to sell. Its not all of the developers but most of them.”
Fitch Rating sees Russia’s real-estate losing 20% to 40% of its value this year and anticipates a sharp drop in the number of new projects. Developers themselves, like Yury Sinyaev, Marketing Director at Konti, try to stay upbeat, saying real estate in top markets like Moscow is unlikely to become much cheaper.
