Voronezh Region deputy governor: There is a crisis in regional housing market, but there will be no collapse

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Construction industry of Voronezh Region develops dynamically, however the real estate market already started facing the global financial crisis, announced today, on October 7, Alexander Tsapin, the deputy governor of the region, who is supervising in the administration of the region questions concerning construction, energy, gas-supplying and communal services.

Tsapin underlined while speaking at a press conference for regional journalists that Voronezh Region is among the leaders on the volumes of construction in the Central Federal District: only Moscow, Moscow and Belgorod Regions are ahead, reports a REGNUM correspondent. Within three quarters of 2008 430,000 sq. m. of housing have been commissioned in the region and by the end of year this index will reach 1,200,000 sq. m. About 70 multi-story residential apartment blocks are preparing to be commissioned.

Nevertheless, the region, as well as the whole country, starts facing serious difficulties with sales of constructed apartments: “The situation in financial markets notably damped sales of housing. The market fell silent. While in Voronezh Region this process is still somehow going on, people little by little continue to buy, invest in the real estate, but in many regions such, as Siberia and Ural – the real estate market hushed up at all there.”

According to the deputy governor, investments in development of city infrastructure, which totaled one third of market value of apartments had a serious impact on the situation in construction market of Voronezh Region. “The fact that we actively invest in development of engineering communications, will help today to stabilize prices on housing, and do not allow sharp fluctuations.”

Tsapin declined to forecast further development of the situation, however, he stressed, that, according to his opinion, there will be no slump of prices on housing, because investing in the real estate is still the most popular form of investment in Russia. He believes it will allow the real estate market to overcome a crisis with minimum losses. Thus, as underscored Tsapin, a complex of measures has already been developed at the state level in order to stabilize the situation. As for the region, it is also will not remain aside and in short run will offer to builders its own measures.