In what year was the Russian real estate market formed? Structure and functions of the real estate market

The property market in Russia is one of the largest segments of the national economy. At the same time, its development largely depends on the state of affairs in other key sectors of the economy. The real estate market in Russia is sensitive to crises, to the macroeconomic situation. How can this dependence be traced at different stages of its development? What are the main periods of formation and growth of the real estate market in Russia?

The real estate market in Russia: structure

Considering the main stages of development and establishment of the real estate market in Russia, it will be useful to examine it from the point of view of the functioning of 2 rather different segments - deals with residential objects and legal relations, the subject of which is the purchase and sale and lease of commercial property.

It can be noted that both these areas fulfill a number of important functions for the national economy of the Russian Federation:

- stimulation of demand in the credit market;

- stimulation of supply in the construction market;

- stimulating the growth of the money supply in a large number of other business segments - real estate consulting, production of building materials, varnishes, paints, finishes, wallpapers;

- solving urgent social problems related to providing citizens with housing;

Thus, the real estate market is one of the most important drivers of the country's economic growth as a whole. Let's consider now how its most important segments were formed and developed.

The residential real estate market in Russia: the first years of development

In what year was the Russian real estate market formed in the sphere of transactions with residential properties? On this account, there are several points of view.

According to many researchers, the residential real estate market in the corresponding segment began to be formed in 1990 - after the publication of the Law "On Property", which approved the institution of private property in the USSR - for the first time in a long time. Before that, in the Soviet Union, this or that property, including apartments, was in the personal possession of citizens. But not in private property - the corresponding institution in the USSR was associated mainly with the capitalist system, which ideologically opposed socialist principles.

As soon as the Law "On Property" was adopted, at the disposal of the citizens of the USSR there were houses and apartments, which by that time they had acquired in the order of the current credit formats. It should be noted that these loans were quite far from the mortgage programs common to today's man in the street, but to some extent similar to them. The owners were also able to sell their property on the market.

The factor of privatization

In turn, since 1992, a large-scale privatization of apartments, received by that time from the state, was launched. This predetermined the formation of large volumes of supply on the market, and due to the fact that free distribution of housing from the state was minimized (except in the framework of certain social programs), there was also a demand for real estate.

If we talk about when the Russian real estate market emerged, then it is possible to orientate just for the period of the beginning of privatization of state apartments. That is, it's 1992. However, some experts believe that the Russian real estate market was formed in 1991, just after the Law "On Property" fully earned, and the first commercial transactions for the purchase and sale of housing began to be implemented. But due to the rather small volume of demand and supply, the mechanisms that characterized the market before that could not be considered as fully marketable. Only with the beginning of privatization, those began to form.

Thus, the stages of the formation of the real estate market in Russia, if we talk about the residential segment, it is more legitimate to count down since 1992. It is another matter that the corresponding sphere of commercial relations presupposed the existence not only of an institution of private property, but also of a large number of legal and financial mechanisms through which transactions on the purchase and sale of apartments could be carried out. Let us consider this aspect in more detail.

When the legal mechanisms of the real estate market of the Russian Federation were formed?

So, in what year was the Russian real estate market formed, if we talk about its residential segment, we now know - in 1992. However, in its original form it functioned within the framework of obsolete legal systems, which were still largely oriented toward the socialist period. What to say - even the Constitution of the state at that time was absent. But in 1993 she appeared. Later, laws on state registration of rights to real estate were enacted and enforced in 1997, and on mortgages in 1998.

Legal and Financial Institutions: Impact on Market Development

Thus, in spite of the fact that the Russian real estate market was formed in 1992, it took time for it to acquire appropriate mechanisms for legitimizing transactions for purchase and sale, as well as lending.

Actually, the fact that mortgage programs were approved at the legislative level predetermined the beginning of the formation of a new stage in the development of the housing market in the Russian Federation, characterized by a steady increase in demand, and as a result, property prices. Regarding periodization, it corresponds to the 2000s before the crisis of 2008-2009 began.

Let us consider its specifics in more detail.

The residential real estate market in Russia: from the beginning of the 2000s to the crisis of 2008-2009

The main factors in the development of the Russian real estate market in the relevant period were, therefore, mortgage programs (especially the intensive demand for them became in the mid-2000s), the growing salaries of citizens, as well as the constantly high demand for housing. As a result, apartment prices in the 2000s were skyrocketing. The factor of their decline could be crisis phenomena in the economy, which would have predetermined a slowdown in the mortgage market, as well as a decline in demand for housing due to a slowdown in the growth of wages.

Similar conditions arose in the autumn of 2008, when, against the background of negative financial indicators of the world market, problems arose in the Russian economy. The incomes of Russian citizens in the period up to 2010 ceased to grow, at least at the rates that were observed before the crisis of the autumn of 2008. Banks began to more rigorously assess the solvency of mortgage borrowers, which is why the rate of housing loans declined.

As a result, during the crisis of 2008-2009, real estate prices in the RF significantly decreased. But with the stabilization of the macroeconomic situation in Russia, the growth of incomes of citizens began to be outlined again, the banks once again became more active with regard to housing loans, and the real estate market of Russia, the formation of which has already taken place, has entered a new stage of development. Let us study its features.

The Russian residential real estate market: from 2010 to the crisis of 2014

Against the backdrop of a significant increase in the intensity of housing loans, the continued high demand in this period in Russia again began to skyrocket prices for real estate. However, this trend, as analysts say, was not typical for all Russian regions. In particular, in the largest cities of Russia, primarily in Moscow and St. Petersburg, the rise in prices for residential real estate was not so noticeable in relative terms. This analysts connect mainly with the saturation of the market. Despite the fact that the largest cities of Russia remained attractive for relocation, the development of the housing market in Moscow and St. Petersburg to some extent offset the high demand for real estate.

New crisis and real estate market

In one way or another, in many other cities of Russia, due to the lack of supply, property prices have grown steadily. The factor of their slowdown, again, could be crisis phenomena in the economy. These in connection with the complication of the foreign policy environment, cheapening of oil and some structural problems in the national economy of the Russian Federation arose in 2014.

The income of the population grew again. In a particularly negative way, the new crisis affected the banking sector - the Central Bank was forced to increase the refinancing rate, and commercial credit institutions, in turn, tightened the terms on loans. As a result, the mortgage market has slowed significantly. These factors predetermined a new recession in the residential real estate market in Russia.

What are the prospects for this sphere of property and legal relations in connection with the current economic situation?

The Russian residential real estate market: prospects

The stages of development of the real estate market of Russia, considered by us, indicate that the crisis phenomena for the corresponding segment are not new. During the recession of 2008-2009, there was a similar decline in housing prices, as in the crisis of 2014, the dynamics of mortgage lending was declining. But as soon as the state of affairs in the economy improved - both the situation in the segment of residential real estate was also being adjusted - due to the constantly high level of demand for housing.

Waiting for government action

To overcome the crisis in 2008-2009, the Russian economy was helped by high oil prices, starting in 2011, amounting to about $ 100 per barrel. Will the return to them now, when "black gold" costs several times cheaper - a big question. If this is the case, then, probably, the once-current driver of the growth of the Russian economy will work. If not, it is likely that they will have to wait until the government's programs to stabilize the situation in the national economy, aimed at ensuring the replacement of oil revenues, begin to function.

Consequently, the state of affairs in the residential real estate market depends on how successful the state policy in the area of adaptation of the Russian economy to the new conditions prevailing in the world market will be.

The market of commercial real estate in the Russian Federation: formation and development

So, we found out what year the Russian real estate market was formed and how it developed - in the residential segment. Let us now investigate the specifics of another sphere, namely, commercial real estate. Sales, purchase and lease deals are made with respect to such facilities as office buildings, shopping centers, hotels, warehouses, garages, industrial facilities, stadiums.

Was privatization important in business?

At the beginning of the article, we determined that in the residential segment of the Russian real estate market was formed in 1992 - when privatization began. As for commercial facilities, similar market phenomena in the relevant sphere, when state ownership was transferred free of charge to private owners, was not observed on a large scale. Therefore privatization of private commercial facilities, although it took place in the Russian Federation, could not become the same powerful growth driver for the segment, as in the case of residential real estate.

Therefore, we can conclude that in the commercial segment of the Russian real estate market was formed in the year just the same in 1991, after the Law "On Private Property" began to operate. Further drivers of its growth were, again, the development of lending programs, but already adapted to the commercial sphere, as well as the intensive development of the Russian economy, especially in the early 2000s.

The economic factor is universal for all segments

As in the case of the residential segment, the commercial real estate market was sensitive to the crisis of 2008-2009. Also, it was negatively affected by the recession of 2014 and 2015. Therefore, the prospects for further development of this area of the national economy also depend on macroeconomic trends.

However, unlike citizens who are the main sellers and buyers in the residential real estate market, the relevant subjects in the commercial segment - enterprises, can exert a more significant influence on the economic processes in the country. Thus, the implementation of state programs aimed at modernization in the economy, largely depends on the intensity of commercial activity of private enterprises.

Therefore, in the forces of business to do much to ensure that the situation in the national economy of the Russian Federation has acquired a more positive dynamics. As a consequence - to stimulate the further development of the commercial real estate market.

Summary

So, we determined the year in which the Russian real estate market was formed in the residential and commercial segments, identified the main stages of its development. The main factors affecting the state of affairs in the relevant sphere of the national economy are mainly of a macroeconomic nature. If the situation in the country's economy is characterized by the predominance of positive trends - the real estate market in both segments is actively developing.

As for the peculiarities of its development in the residential and commercial sphere, we can first of all note the fact that the Russian real estate market was formed in special conditions of transition from the socialist model of economy to the capitalist one. The legal and financial institutions necessary for its full functioning did not appear immediately.

However, in the modern form, the market of Russian real estate develops according to the same principles that are characteristic of most capitalist states. The formation of prices on it occurs due to the objective correlation of supply and demand. This explains the dependence of its development on the situation of the economy as a whole. If there is effective demand, then the dynamics of the market will be positive.