Actuality March 17, 2008

PricewaterhouseCoopers (PwC) Analytical Company declared Moscow the most perspective city in Europe for the real estate investments.

However, the risks are close to maximal at the highest returns, the analysts think.

These statements are outlined in the report "New tendencies in the European real estate 2008". And the whole report will be proclaimed only in April. But its key points are already well-known.

So, Moscow and Istanbul are on the first and second places respectively.

These cities' real estate markets can be named "emerging". The former leaders – London and Paris – had to squeeze up. The changes' reason is both in the Russian economy growth and in

the slump at the developed markets.

For example. According to the Bloomberg agency data, in London the prices collapse for the commercial real estate in 2007 was the most considerable for the last 17 years. London has "fallen" to the 15th place in PwC rating.

In their turn, the prices for the Moscow real estate went to the $5000 mark up per a square meter for the last two years.

One should not wait the price drop in the nearest future. And, probably, it would never come, except for the growth. For example, Mr.

Kazinets, the Moscow Constructors' Association vice-president, in the last year's interview to "Ogonek" directly recommended buggering off the native city those, who do not have the highest earnings.

He was also for historical buildings' liquidation in the center.

It is obvious that the present "powers that be" want to reduce maximally the relationships with "mobs". And there are all chances that they will succeed to put the "inconvenient" social layers out of the city in

the nearest future.

Moscow investment attraction contributes to this.

The only "brake", paradoxical as it may seem, can be the same factor in terms of which the endless compaction constructions and the vigorous growth of "elite" accommodation (authority and political ones) to the detriment of standard one became possible.

The investments' attraction into the Moscow real estate is counterbalanced by abundant investment risks. And namely "unclear administrative barriers" and corruption eliminating the just competition that makes business hardly predictable.

The just competition absence exactly resulted in the present situation: high accommodation prices, inadequate earnings, pensions and utility tariffs. And not the market pricing at all, like try to assure

the real estate developers. From the other hand, the corruption exactly can now prevent the investments flow and accelerated Moscow transformation to the city for only rich people, as Kazinets-men dream of.