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Luxury Real Estate Outlook

Posted by on October 16, 2011

For construction companies these days markedly increased the cost of failure. Two or three years ago, profits could cover almost any unplanned expenses. Currently, construction costs are growing much faster than cost. As it should be. The most expensive property developers to pay for the land. Several years ago, agricultural lands were worth so little that, gathering documents and selling second allotment, it was possible to a profit of 3 times the value of the land. Now this "freebie" does not exist.

Not even in smooth areas of legal terms is not possible to buy for a penny. The category of "elite" (and this class is always in the exclusive market) is already filled to the limit: the number of proposed settlements several times exceeded the demand, and each year it is glut in the market all the more striking. Projects plants two years ago is no longer meet consumer demands. They are, in particular, has not attracted the elite country cottages, even in the 20-30 hectare – it's too small. But in the suburban real estate market continues to form new construction companies, offering more shelter $ 1 million for 10.4 acres plots. Most likely, the sale of such settlements would be frozen.

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