Ural Chamber of Real Estate: sales to drop 10%

12 August 2014 (13:04)

August 12, 2014. According to the forecast provided by Ural Chamber of Real Estate, sales might drop by 10% by the end of 2014. These data are provided in the report by head of the Chamber’s Analytical Department Mikhail Khorkov.

The report also states that competition might grow more intense on the new and existing homes market, while the customer activity might be on the decrease. Given that the demand has not been growing lately, whereas sales have been on the rise, prices might change again in the future.

It is also expected that new real estate market segments will emerge and develop, namely, low-rise apartment buildings and luxury apartments. The market range will offer more variety in terms of quality and the market will keep becoming more decentralized: most of the construction process will take place on the outskirts of Yekaterinburg and in satellite towns. At the same time, demand will shift towards new homes.

According to forecasts, real estate prices might start declining by 10% to 15% as soon as this year and continue through 2015. This has to do with the fact that construction began in the suburbs and remote parts of Yekaterinburg in 2013-2014. Since housing prices are lower in remote parts of the city compared with the downtown, and the share of such housing is rising, the median price of a square meter of housing is gradually dropping, says Deputy Director-General of AVS Development Anastacia Dudareva.

Other materials on the topic::