Own A House - real estate market news

In December-January group G-14, which is uniting the largest building companies of Spain, has not begun any developer project.
February data are not published yet, but it is supposed, as last month the situation remained the same.
The main reason of developers such behavior can be explained by the fact that Spanish real estate has a lot of unsold houses. So, company Metrovaseca planned to sell 2,463 thousand objects, constructed in 2008, but actually it has sold only 657 (27 %). The total number of non-realized habitation in Spain can reach 1 million objects.

Money, which Midland Group has received from sale of office to the Savings Bank, has not rescued it from crisis. The company has paid off under credits, but it is compelled to freeze construction of more than 1 million sq. meters of the real estate in Moscow.
Midland Development (Midland Groups affiliate) freezes construction of major parts of Moscow projects.
As it has become known, because of limitation of access to credit resources the company stops approximately about 1 million sq. meters of the real estate objects in Russian capital.
Techno Park on a place of Moscow bus factory is among the largest frozen projects.
Earlier Midland Development has already frozen program Strip Mall.

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.

According to the analytical center of real estate agency DOKI, in January, 2009, the quantity of references about purchase of the foreign real estate has increased on 32 % in comparison with January, 2008.
Earlier experts of DOKI have summed up activity of department of the foreign real estate in 2008. During 2008 constant growth of interest to the real estate objects was observed. Bulgaria and Czech Republic, share of which in total references make 25 %, became the most popular countries for clients of the agency. Transactions in these countries are made in a range of $48 - $52 thousand
The real estate of Cyprus interested 16 % of clients; the average sum of the transaction with the real estate in this country makes $320 thousand. Spain follows Cyprus on popularity. 15 % of DOKI’s clients addressed were interested in real estate of this country and the average sum of the transaction makes $210 thousand.
Preferences on other countries were distributed as follows: United Arab Emirates and the USA -12 %(the average sum of transaction makes $179 and $370 thousand accordingly) ; Turkey - 10 % (the average sum of transaction makes $120 thousand); Croatia and Montenegro - 8 % (the average sum of transaction makes $240 thousand); Egypt - 7 % (the average sum of the transaction makes $42 thousand); France and Switzerland - 3 % (the average sum of transaction makes $480 thousand); Italy - 2,5 % (the average sum of transaction makes $360 thousand); Portugal - 1,5 % (the average sum of transaction makes $200 thousand).

For the last week the value index of capital habitation has decreased more than on one percent and has made 5,927 points. It is remarkable, that such rates of decrease correspond to monthly falling approximately on 5 %, which was earlier observed only during the period after a default in 1998.
For last week cost of the cheapest apartments in Moscow has decreased on 0,6 % and has made $5,515 thousand for sq. meter. The price for the modern apartments has lost 1,8 % ($5,796 thousand for sq. meter).

Bank Uralsib is the first of Russian banks, which is measured to address for subordinated credits, has decided to increase its authorized capital due to real estate.
Bank’s shareholders have made a decision on increase in the authorized capital of bank at RUR 6,2 billion by accommodation of additional emission of shares among operating shareholders. Thus the most part of placed securities (RUR 4,69 billion) will be paid not by money, and real estate.
In exchange for shares Joint-Stock Company “Business centre” Uralsib”" will transfer bank office building (Efremova str., 8). The main office of financial corporation “Uralsib” with the same bank also settles down here now.
The opportunity of escalating of the capital of bank due to real estate is stipulated by the Russian legislation, now 20 % of the authorized capital of bank can be paid due to the real estate.

Russian center of studying of public opinion has submitted data on economic results of year in estimations of Russians: it is said about what Russians citizens think about financial crisis and prospects of Russia as prefer to store savings.
In terms of crisis interest of Russians to the real estate as to means of preservation of savings falls. It remains in the most reliable way of an investment of money (41 % of Russians think so), but for last month its popularity has fallen (on 48 %). purchase of gold and jewelry is on the second place (17 %) - in November 21 % of Russians this way considered reliable.
Further such ways, as purchase and storage of a foreign currency (6 %), purchase of enterprises shares, contributions to pension funds (on 4 %) follow. Only 2 % of Russians prefer opening account in commercial bank, and 1 % - contributions to share investment funds.