Mayor of Moscow Says Time to Buy Apartments

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-- Mayor of Moscow Says Time to Buy Apartments

Posted by otec on Jan-15-2009 03:52:

Mayor of Moscow Says Time to Buy Apartments

quote:
Mayor Says Time to Buy Apartments
14 January 2009

The Mayor's Office would like for all those interested in purchasing a Moscow apartment to know that there is no time like the present.

Despite ubiquitous forecasts of steep declines in real estate prices, the city government is saying such a situation is impossible.

"No matter how much we would like [for apartment prices to fall], we need to look truth and reality in the face. Right now, it is impossible," Mayor Yury Luzhkov said Tuesday at a city government meeting, Itar-Tass reported.

Two other City Hall officials at the meeting blamed a media disinformation campaign for convincing potential homebuyers that there would be a precipitous decline in real estate prices this year.

"At the moment, it's really difficult to get credit. The rates are really high -- this is what's stopping people. And disinformation about the fall in prices is inciting people not to buy apartments," said Vladimir Resin, the head of the city building complex.

First Deputy Mayor Yury Roslyak agreed, saying that because of media reports the housing market is in a state of "complete stagnation."

In the last week alone, the average housing price in Moscow decreased by 0.8 percent, according to IRN.ru real estate monitoring agency.

The city has played a role, however, in propping up housing prices.

In October, City Hall announced a $2 billion bailout plan to help key developers under financial strain.

Since then, Moscow has gone on a buying spree, snapping up unsold apartments from developers at retail prices ranging from $2,700 to $3,100 per square meter. The city has since tried to renegotiate prices.

Source

Many analysts predicted property prices in Moscow to fall, which is an absolutely reasonable thing. People don't have access to credit anymore, the unemployment level is rising, many don't have any idea about their the future.

But this corrupt bastard, mayor of Moscow Luzhkov, says there is disinformation coming from media and no one should expect prices to fall and advices to buy apartment now.

No wonder why, he feels a threat to his construction company that he heads with his corrupted wife. They've taken a lot of credits during boom 2006-2007 years, part of which has remained in their own pockets. It's time to pay the debt back and he lacks the funds.

quote:
Today, one could expect to pay US$4000 in average per square meter in the outskirts of the city or US$6,500-$8,000 per square meter in a prestigious district. The price sometimes may exceed US$40,000 per square meter in a flat. It costs about US$2500 per month to rent a 1-bedroom apartment and about US$1500 per month for a studio in the center of Moscow.

This is just ridiculous, especially comparing those prices with an average income of people working in Moscow.