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Forecast Says Real Estate Prices In Russia To Sink Next Year

MOSCOW -- The value of property is expected to fall in Russia in 2009, particularly in the capital, as the effects of the global financial crisis continue.

The Russian SberBank's Center for Macroeconomic Research has forecast that the biggest fall in real estate prices in Russian next year will be in Moscow, one of the world's most expensive cities.

RFE/RL's Russian Service reports that the situation in Russian regions and cities will vary.

By the fourth quarter of 2009, real estate prices in Russia are to go down by about 7 to 12 percent, while in Moscow a drop of 23 to 38 percent is forecast by SberBank.

Real estate that is for sale only in dollars will provide even better reductions for buyers since the ruble has weakened against the dollar, according to SberBank.