News.World-Estate.com: When the social status and Real Estate market supply appears, it is no longer needed
/EIN News/ December, 1st, 2008. News.World-Estate.com: When the social status and Real Estate market supply appears, it is no longer needed
www.world-estate.com
Eastern Europe has been different in rules and laws for a long time. As the Real Estate and economical crisis has shaken the world, situation in Real Estate market is in a way funny: there was no need for flats when they were available, when the supply appeared - the need vanished. News.World-Estate.com discusses the causes of such situation.
Almost all Eastern Europeans were in practically the same social position until communism and Soviet Union had collapsed. Well, almost all of them - except the functionaries of the political parties.
The property was owned by the state. People lived in concrete blocks, with more than one family in a flat. As the communist industrialization started, more and more people were being attracted to live in towns in order to settle them. People who lived in the countryside had no property though the land was declared as belonging to the peasants.
However, after the collapse of communism and the Soviet Union former members chose the road of capitalism and free market. Respectively, the bigger part of Real Estate market was privatized or returned to the former hosts. At this situation anyone could buy a flat or land.
These were the causes which made social differences as the gulf between new capitalists and the rest of public went wider. The rest of public privatized flats for living while the “new riches” built castles around the cities with colons, terraces and huge gardens. Later such houses were rebuilt or renowned. External blaze went to the background - interior design and functionality became the most important.
As the business developed, a new social group was formed. It needed new comfortable flats, which in fact the market lacked. Young specialists earning high permanent income wanted new flats. At that time state banks, having become commercial, started providing loans warranted by the state government. Having noticed this, construction business owners started developing projects of new and comfortable houses and even blocks.
As the economy developed and more people earned higher income, more people came from the countryside to look for a better salary because the agriculture went on a slowdown. In this situation the shortfall of Real Estate market appeared. New housing projects have not been developed for a long time, though the number of people willing to buy new flats was constantly growing. This started a Real Estate boom which increased as the economy developed.
Because of this boom housing supply for all market players (from people earning the smallest money to the riches) increased - from simple flats to huge penthouses in the centers of towns, from small garden houses in the suburbs to expensive residencies with beautiful surroundings. However - as News.World-Estate.com sees from latest trends in the market - people even having the ability to choose anything choose nothing. In this case all social groups “has switched to the economy mode”.
For more information please contact:
Simonas Rudaminas
WORLD-ESTATE
World-Estate.com project manager
Mob.: +370 656 88777
Email: info@world-estate.com
www.world-estate.com
www.world-estate.com
Eastern Europe has been different in rules and laws for a long time. As the Real Estate and economical crisis has shaken the world, situation in Real Estate market is in a way funny: there was no need for flats when they were available, when the supply appeared - the need vanished. News.World-Estate.com discusses the causes of such situation.
Almost all Eastern Europeans were in practically the same social position until communism and Soviet Union had collapsed. Well, almost all of them - except the functionaries of the political parties.
The property was owned by the state. People lived in concrete blocks, with more than one family in a flat. As the communist industrialization started, more and more people were being attracted to live in towns in order to settle them. People who lived in the countryside had no property though the land was declared as belonging to the peasants.
However, after the collapse of communism and the Soviet Union former members chose the road of capitalism and free market. Respectively, the bigger part of Real Estate market was privatized or returned to the former hosts. At this situation anyone could buy a flat or land.
These were the causes which made social differences as the gulf between new capitalists and the rest of public went wider. The rest of public privatized flats for living while the “new riches” built castles around the cities with colons, terraces and huge gardens. Later such houses were rebuilt or renowned. External blaze went to the background - interior design and functionality became the most important.
As the business developed, a new social group was formed. It needed new comfortable flats, which in fact the market lacked. Young specialists earning high permanent income wanted new flats. At that time state banks, having become commercial, started providing loans warranted by the state government. Having noticed this, construction business owners started developing projects of new and comfortable houses and even blocks.
As the economy developed and more people earned higher income, more people came from the countryside to look for a better salary because the agriculture went on a slowdown. In this situation the shortfall of Real Estate market appeared. New housing projects have not been developed for a long time, though the number of people willing to buy new flats was constantly growing. This started a Real Estate boom which increased as the economy developed.
Because of this boom housing supply for all market players (from people earning the smallest money to the riches) increased - from simple flats to huge penthouses in the centers of towns, from small garden houses in the suburbs to expensive residencies with beautiful surroundings. However - as News.World-Estate.com sees from latest trends in the market - people even having the ability to choose anything choose nothing. In this case all social groups “has switched to the economy mode”.
For more information please contact:
Simonas Rudaminas
WORLD-ESTATE
World-Estate.com project manager
Mob.: +370 656 88777
Email: info@world-estate.com
www.world-estate.com
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