Own A House - real estate market news

This week large Belgian warehouse real estate developer Immo Industry Group (IIG) filed for bankruptcy. Nevertheless, IIG is going to continue work.
Immo Industry Group started the claim about the beginning of bankruptcy procedure on trading affairs in the city of Dendermonde (Belgium) on February, 16th. GII has started to face problems after liquidation of the basic financial partner of group - British fund Belgravia Asset Management.
IIG unites civil-engineering designs of 18 industrial parks in Central, the Eastern Europe and Russia. Bankruptcy of the Belgian developer will not affect activity of its joint ventures.

Experts of the Polish real estate market predict that cost of apartments in the country will fall within the next few months.
In January cost of sq. meter in annual calculation has decreased on 12,4 % in Opole, on 11,4 % - in Krakow and on 10,7 % - in Sopot. Besides, the prices have fallen in other cities of the country - Katowice, Gdansk and Warsaw.
According to the Polish developers association, the beginning of this year sales volumes of apartments in the country reduced on 70-80 % concerning the similar period of 2008.

According to company Jones Lang LaSalle, in 2007-2008 Turkey and Russia became the key markets for foreign realtors’ activity. About 10,6 %of the general number of foreign have come to Russian real estate mark. For Turkey this parameter makes 11,3 %.
Countries of Central and the Eastern Europe dominate in a rating of the most popular realtors markets. In this list Great Britain has taken the seventh place and has attracted 6,6 % of foreign realtors.
In spite of the fact that today economic recession has affected demand; realtors demonstrate interest to the markets of Central and the Eastern Europe countries. Thus many of them consider only franchising for minimization of risks.
Russian market and current year shows active interest from foreign realtors: arrival at least 10 new brands is expected. Besides, the size of the market and rate of its development, in current conditions the important fundamental indicator, is low debt loading of the population that will allow to keep high trade indicators.

Following Moody’s example, Fitch has also has lowered Mirax Group’s ratings - it has been caused by Mirax Group’s debt in $601 million, which the company should pay in 2009.
Agency Fitch has lowered long-term ratings of a default of the emitter under promissory notes from B (high speculating degree) to C (high risk degree). The short-term rating has been lowered from B to C, thus all ratings are on revision with the negative forecast.
Decrease of ratings reflects concern weak position of Mirax Group’s liquidity.