Source Pravda.Ru

Moscow Real Estate Prices Jump 5% in Q1, 2003

Despite the expert forecasts, the average increase in prices of homes amounted to 5 percent by the end of the first quarter of 2003. According to real estate agents, the last year's average growth in real estate prices on the primary market came to 20 percent. Since then most of the experts strongly believed that the market would calm down, but they proved to be mistaken. The number of deals on the primary market in January and February was twice as high as the normal volume.

This unexpected upsurge was largely due to the war in Iraq, the dollar rate setback, the euro rate growth and also to the property developers' strong influence on price formation.

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