Own A House - real estate market news

Most of all office areas in Europe are rented by bankers. The total of office areas occupied with the bank organizations in 15 leading European cities has made 670 thousand square meters for first three quarters of 2007, was informed in the press release of Cushman & Wakefield. It is 10% more, than during the similar period of the previous year.

By the end of September, 2007 banks have rented and have bought 13 percent of the market of office real estate in Europe. In the beginning of the year this parameter was equaled to 8%.

According to EMEA Banking Business Briefing, made by Cushman & Wakefield, Moscow has now joined such traditional centers of business activity, as London, Paris, Frankfurt and Brussels. Two thirds (67 percent) of all office areas rented or got by a bank sector in first three quarters of 2007, are located in these five cities.

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.

Dwellings all over the world will fall in price twice, predicts Dutch professor Pit Aihholts. He has analyzed the prices for houses in Amsterdam for the last 350 years and created a unique index.

Pit Aihholts: «The prices for real estate can do everything, but only within 5-10 years. In the long-term period they move horizontally».

Aihholts has found out, that before the oil crisis of 1979, price varied only in view of inflation. Then real estate has strongly risen in price according to Schiller’s index. And now, according to the calculations, the scientist predicts that the prices will return to the marks of 30-years prescription.