The prices for real estate or commercial value
Commercial value characterizes a project cost in the market, at that it is necessary to take into account that commercial value is a price for the reasonable buyer who has all necessary information. As a rule, the given cost is applied at transactions of sale and purchase, transfer of object leave as a deposit, evaluation of rent payments, etc.
This cost is also the most important in estimation for the common person. But nobody can give exact information on cost of an apartment. And an excessive price existing in many cities for the present time makes fluctuations of the price even in 1-2 % an essential fluctuation in real money.
Huge value in the creation of real estate price makes the psychological readiness of people to pay this or that money. People in the beginning estimate the prices (look through offers in the market) and only then comparing variants - look for the best one. Thus creation of false prices (strongly overpriced) stimulates people to purchase real estate for a “little bit” overprice.
Summarizing, psychological pressure upon the buyer plays the huge role in formation of the prices for the real estate at present.
- Investments into the commercial real estate have sharply decreased
- Prices for houses in Tokyo can be reduced
- Investments into European commercial real estate decrease
- Switzerland: reliable investments into the stable country.