Cushman & Wakefield: Apartment Prices are Expected to Drop by 15-20%
Apartment prices are expected to decline by 15%-20%, the resident real estate market survey by Cushman & Wakefield consulting company reads.
One third of companies has already lowered or plan to lower apartment prices.
“The price reduction tendencies have been already outlined. In April both major and small developers have launched an active campaign – special offers and various discounts in short-term period, however, the majority of respondents do not plan to lower prices.
At the first stage of the survey, 14% of the respondents proved plans for lowering prices, 29% had not taken a decision, while 57% had no plans for lowering prices. At the second stage, one third of the companies have already lowered prices or plan to lower prices in the near future, while the remaining part have no plans for revising the price policy.
The developers, who do not plan to revise price policy, refer to corresponding theoretical knowledge. Amid economic crisis and uncertain future, the price flexibility in relation to the demand is low. Lower prices do not guarantee the demand will grow. Price reduction may slightly raise the demand, but developers will threaten their price mark and product quality. Furthermore, as noted by part of the developers, they have financial obligations that they will fail to serve with lower prices’, the report reads.