Now prices of real estate are sliding down in many countries. In Europe you could not find a country where prices are not falling. In USA it is an even worse crisis of real estate.

About the crisis in real estate market there was some half-mouth talking half a year ago - now it has touched lots of countries. Although in every country there still are some people are stating that situation in their country is different compared to the remaining world or at least nearest neighbors. And they are being most obstinate about it.

Business forecasts made by real estate experts predicted decrease of prices but it needs admitting that they were keeping this information in secret for long enough. Probably that is one of the main reasons for crisis of real estate.

"Concealment of information was useful for all parts related with real estate. Bankers were giving credits without even looking - the more money they give, the more they earn. It doesn't matter that the real worth is lesser than sold - banks are taking profit first and only then they get credit back. Builders made dreamlike profits out of price elevation. Any rational person can understand in how could construction prices increase by 150 percents in the latter 24 months," - wonders wwwWorld-Estate.com project manager S. Rudaminas.

Real estate agents earned bigger amounts from sold real estate than real transaction value. While the market has been getting downward to the crisis, so called profiteers pushed it to the precipice. Overall the biggest part in this "prices will get up" game falls to the bought mass media, which megaphoned like crazy: "The prices have not reached their limits". Although it was clear for everyone that increase of prices has stopped.

Countries where government had controlled increase of prices and possible inflation rates strongly protected their markets. The biggest impact of these changes will lay on the shoulders of young EU member countries, which are just starting their way to the free economy and democracy.

Published up-to-date Europe's real estate data indicates that market is starting to get cool but the drop of prices is not seen everywhere. Great Britain and Ireland are demonstrating huge swoop down. On the other hand, for example, in Sweden and Cyprus the situation is on the opposite - the increase of prices still counts in double digits there.

However, expectations by Europeans about the future of real estate differ. Germans are prone to rent accommodation more than other Europeans. Moreover if they have taken credit - the interest rate paid for banks are fixed instead of variable. So there is no surprise that more than half of them believe that over next five years the value of their apartment would not change. Also we need to keep in mind that over last fifteen years the prices for accommodation were stabile.

"Anyone could hardly say that their property would worth less: whatever it is - real estate or other capital. Because everyone is looking through the seller's eyes but the market mostly is on buyer's side", - states World-Estate.com project manager Simonas Rudaminas.

Tendencies in rent market indicate that objective demand for accommodations really exists. People are planning to buy their own apartments and after a half-year or year situation will overturn because the supply will narrow. All in all, the market itself will settle such things.


For more information please contact:

Simonas Rudaminas
WORLD-ESTATE
World-Estate.com project manager
Mob.: +370 656 88777
Email: info@world-estate.com
www.world-estate.com