we can make a conclusion that the market is standing still waiting for more cost dropping, though predicted by many analysts decrease is not anticipated. In such circumstances a customer is passing out of sight waiting for prices collapse. But as soon as a slight hint appears, demand will flow into the market and one more rise of prices is unavoidable.

A year ago the average price of one-room flat of new design on one of the central Khabarovsk streets – Lenina st. totaled 2300 kRUR, in June 2009 the cost of similar apartment was hardly less than 2250 kUSD. The explanation is that the demand for the apartments in Central part of Khabarovsk city was always high, and even during crisis period customers are not going to decrease their prices. If a bargain is not urgent, most people prefer to wait for better opportunity keeping the same level of price. In addition to that the accommodation price on the secondary market and on new building market doesn’t significantly differ: in the housing estate “Amurskiye zori” an average flat of 42 s.m. costs 2300 kUSD along with the so-called brezhnevka (old-design flat) of 32 s.m.

Moscow real estate prices look set for strong and sustained growth for many years to come and here we will look at why.

With the opening up of the Russian economy we have seen major investment in property, from a number of well known foreign institutions.

For example, a division of Germany’s Deutsche Bank is committed to an investment of $500 million for Russian real-estate investments alone.

The biggest foreign investment in Moscow real estate is the new Great Domodedovo, development near Moscow.

44,000-acres are being developed here for new residential and commercial building recreational facilities – the project is costing around $11 billion. The project is being funded by Limitless, a division of Dubai World, the investment company owned by the ruling family of Dubai.

The foreign investment in Moscow and other Russian cities is not just coming from overseas and major funds are being raised by Russian real estate developers.

For example, Russian real estate investment companies are estimated to have raised around $2.7 billion via stock offerings in 2006 alone and the amount for 2007 is expected to exceed this level.

Moscow’s real estates new found confidence will soon be seen in the Moscow City Towers. Designed by world famous English architect Sir Norman Foster a winner of the Pritzker Prize, the Towers are expected to be the highest building in Europe when completed. In its shadow will be a huge retail, hotel and leisure complex overlooking the Kremlin.