When will the Russian housing market begin to recover?
The other day in the Western press, it was reported that the Russian residential real estate market will begin its recovery in 2017. The forecast was published by Standard & Poor’s - International Rating Agency.
It was reported that amid a decline of 3.7% last year and 1.3 this year, recovery of Russian GDP will begin in 2017.
The reason lies in the government program to subsidize mortgages, which ensures the demand for housing, despite the rather high rates. However, the commercial real estate market, in the medium term, will still be under pressure due to the economic situation in the country as a whole.
The prospect of recovery of this market is predicted a little later, largely due to the currency risks incurred by the company. Especially when the obligations of the company are expressed in currency, and the proceeds in rubles.
S & P also notes in its materials that housing developers, unlike developers of commercial areas, have a low debt burden.