Kazan Real Estate Market Expected To Freeze In 2012
The maiden “Christmas Summit” of the Russian Developers Guild took place in the “Riviera” hotel, Kazan on the 16th December. The meeting of Russia’s major real estate agents revealed that the state had become the key player in the real estate market. The Kazan market is reportedly characterized by the deficit of office premises on the market, especially in the class A segment. The existing 650 thousand meters of shopping venues in Kazan are also said to be insufficient. This means that the high rent fees in the shopping malls and high margins will affect the prices of all products sold in the shopping centers. The residential real estate in Kazan demonstrated a 5-7% percent increase in November, 2011.
The Kazan round table or real estate majors also discussed the current trends in the housing market such as a sufficient growth in demand for second homes. This is said to be motivated by the use of real estate as an alternative investment tool to replace bank deposits. The majority of the market players are those who are buying homes No.4 or No.5. As for the majority of Kazan residents the purchase of the family’s first apartment is next to impossible.
With the current average mortgage rate in Kazan at 14% per year and based on the current market situation, the experts and realtors expect the Kazan real estate market to stall and face stagnation in 2012.