Russian real estate market might start to recover as early as 2017. Such projection was provided on Tuesday by Standard & Poor’s (S&P) international rating agency.
The documents published by the Western media say that following the slowdown by 1,3% this year and by 3,7% last year, in 2017 Russia’s GDP will start to recover.
The reason of that is that the governmental program of mortgage funding maintains housing demand under conditions of extremely high rates. Whereas, commercial real estate in a short-term perspective will be under pressure of a current economic situation.
Recovery of this market segment will start a bit later, due to the fact that the companies bear the exchange risks. Besides of that, building developers of the commercial area have much higher debt burden, S&P report says.