Real estate price will fall since November the 7th

Since the 7th of November for getting a building permit developers will need just 134 application approvals instead of former amount of 220. According to some experts it will cause a substantial reduction of the construction costs. Personally I believe that the decrease will be at the rate of about 0,1% to 3%. This is neither little nor much. Today we are to fight for every percent.

But the main saving mechanism will be the lowering of interest rates for construction companies crediting, down to about 2-6 % (which coordinates with the interest rates all over the World, not only in Europe and America but also in China, Turkey and Arab countries) and the diminishing of the monopolist companies’ service cost. Real estate buyers also take into account mortgage interest rates, all over the World it varies between 1 to 5%.

These are the basic means of lowering construction costs.

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