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Real estate market after the economic crisis

by dailymoney

There is no activity that would not suffer and decline from the destructive effect of the collapse of the banking system.

It is easy to assume that the success of any event largely depends on the activities of banks – lending and investment are an integral part of almost any project. Real estate in this regard is no exception, on the contrary, almost one hundred percent depends on the financial injections, the fact that the conceived plan will be fully implemented. But due to the fact that lending was sharply terminated, most development companies were unable to fulfill their obligations to those who have already entrusted them with their financial resources. This is partly why demand in the real estate market has become much less than before – this can be explained by the fear of depositors to give money to the implementation of the project that will not be completed to the end.

In the segment of real estate rental, such a regression was not noticed. Of course, many major investors tried to refrain from large investments in this troubled period of the economy, but still most players decided not to suspend their activities even in such a complex and unstable time. Therefore, lease has begun to use more popularity – the simplest and cheap alternative to buy non -residential real estate.

For an industrial or trading company, an interesting offer was renting a warehouse in the suburbs, which has a number of undeniable advantages:

– relative proximity to the head office in the capital allows you to easily coordinate and control activities at a level available for management;

– But at the same time, the location abroad of the capital allows you to avoid when transporting goods from the manufacturer to the warehouse and from the warehouse to the buyer of loaded transport arteries, on which frequent and long “traffic jams” are possible;

– The economic efficiency of such a lease is also rather big – a similar building, but in Moscow, it would cost much more, and its full -fledged operation would be much more problematic regarding the same structure, but located in the Moscow region.

In general, it is worthwhile to consider such a decision to rent a building very seriously. Of course, first of all, it is necessary to evaluate the return (profit) from the use of a particular asset. In this case, real estate is a fairly liquid asset, the market of which, regardless of whether it is living or non -residential real estate, is constantly developing and growing. As long as demand takes place, the proposal will also exist, and for some companies, such an asset is a direct path to development, increase the revolutions of activity and success in the future.

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