Russia was riding high on the commodity boom, but now with commodity prices down considerably from their highs, Russia's real estate market is struggling. Not only is the real estate market on the decline, but so too is the country. Some analysts even think that Russia no longer deserves to be considered an emerging power. For more on recent developments in the Russian real estate market, read the following article from Global Property Guide.
For much of 2008, Russia’s housing market has seemed insulated from the global financial meltdown. However, the situation turned nasty during the last quarter of 2008. Property prices fell, transactions and sales plummeted, projects were canceled or shelved, and what limited mortgage lending there was available dried up.
At the end of H1-2008, the average price of re-sale flats in Moscow was US$24,840, up almost 30 percent from a year earlier, according to Knight Frank. On the other hand, the average price of newly-built flats was US$21,862, up 23.7 percent from a year earlier.
