Open AccessThe domestic real estate market during financial crises
Author(s) -
M. V. Bogatyreva,
Mariya Leskinen,
M A Kolmakov
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/751/1/012134
Subject(s) - real estate , boom , real estate investment trust , market liquidity , financial crisis , fell , supply and demand , capitalization rate , economics , business , financial system , monetary economics , economy , finance , macroeconomics , geography , environmental engineering , engineering , cartography
The article notes that the Russian real estate market is very young - mass supply and mass demand appeared less than twenty years ago. It is a result of the Russian economic boom in the first decade of the 21st century. Twice the growth of the real estate market in Russia was interrupted because of financial crises. The 2008 liquidity crisis had a devastating impact on the Russian real estate market. It was accompanied by numerous bankruptcies of large construction firms. As a result, the volume of housing supply decreased in the following years. The crisis of 2014 proved to be particularly painful for global commodity exporters, and Russia was no exception. The market reaction to money supply contraction was closer to classic cases. Interest rates rose sharply, and the price of real estate (both residential and commercial) fell significantly. Over the last two years, stagnation in the real estate market in Russia has been replaced by growth. This growth is more noticeable in the housing sector.