It seems that the Sochi real estate market, which has gone through a boom because of the Winter Olympics that will be held there in 2014, have come back to normal levels due to the economic crisis. According to data provided by the mayor of Sochi, the average cost of real estate has come down in the third quarter of 2009 by 50% on a year-on-year basis.
From Ria Novosti: “Local realtors and developers are reluctant to talk about the dramatic collapse of the market, persistently calling the crisis a temporary drop in the price correction. Experts interviewed by RBK Daily disagree with the fact that all accommodation in Sochi, has fallen in price by 50%. Most affected by the crisis were business class – high paid managers- buyers from this segement suffered most. So, some newly built objects’ in the business class dropped by 40%, “- stated the paper.
The line ‘the crisis is a temporary price correction’ sounds all too familiar. One wonders how many and which Western banks have been participating in this Olympics bubble.
[Source: RIA Novosti]