A significant advance in prices on real estate can hardly be expected. That's was the viewpoint voiced at the section "Commercial real estate: management, development, analytics", which took place within the framework of the 14th "Real Estate. Spring 2010" Exhibition Fair.
       The forum took place in Ufa at the Akbuzat Hippodrome. Such exhibitions as "Finance Fair" and "Cottage. Farmstead. Low-height and Wooden Housing Construction" were held at the same time with it. The organizers of these events were the RB Chamber of Commerce and Industry, Ufa Administration and the "Azimut" Unified Real Estate Information Service.
       The organizers tried to invite only real estate market players to the exhibition. However, the real estate market is a rather broad notion. There are investors, banks, developers, engineering and construction organizations, suppliers of constructional materials. There are also valuers, insurers, realtors, mass media, and analytical services. All of them demonstrated their work at the exhibition on April 22-24.
       At the section "Commercial real estate: management, development, analytics" speakers shared their views on the state of affairs in this sector of economy.
       "Now the market is at the state of stable stagnation," Rustem Kamalov, the general manager of the Sun Real Estate Agency considered. "We observed a sharp decline in the number of transactions over the past year. Resettlement of tenants from Ufa downtown to the districts where the rent is lower was also registered. While at the beginning of 2008, the rental rate for commercial premises was 1200 roubles per square meter in a month, it fell down to 900 roubles by the beginning of 2009, and came to 800 at the end of the last year. The average price for commercial premises came to 90 thousand roubles per square meter, and it was reduced to 65 thousand roubles by the end of 2009."
       The opinion of Nail Gilyazov, the development director of the Unikum Management Company was the same:
       "The real estate market has dropped both in the volume of transactions and in prices. The slump in the volume of operation and, as a result, the fall in prices for real estate started in the autumn 2008 and lasted all over 2009. In the fourth quarter of 2009, the situation became a little bit more stable. In the first quarter of 2010, the tendencies are multidirectional. The housing tries to go up in price. But there are also very cheap offers. The reason is that developers need money and they sell housing at the price attractive for the buyers.
       Commercial real estate must be discussed separately. Here are several directions. They are office real estate, storage real estate, entertainment and industrial property. The drop in volumes and prices for commercial real estate still goes on. The demand does not grow. However, some major projects are going to be constructed but it is unknown when they will be put into service."
       Experts consider that there are no preconditions for the rise of prices for real estate this year. During the coming years the prices will most probably grow only within the limits of inflation, that is 10-15%. There are different opinions. Some think that prices for real estate will start to grow dramatically in three-five years, others predict more distant terms.
       "Feverish price advance can hardly be expected in the near future," Nail Gilyazov said. "What was till 2008? Putting of enormous sums of money into economy via mortgage. Banks did not know what to do with money, and this caused price development. At first the advance affected housing, and then money moved to other segments."
       Although one cannot expect great price increase, the prices will gradually grow anyway as the demand will revive, because there is such common notion as inflation.
       "The instability of economy in our country plays a great role," Nail Gilyazov continued. "Foreign investors think that economical and political risks in our country are very high. Nobody actually believes our country. There is money in the West. But it is not actually eager to flow here. Potential investors wish they could earn 15-20% in Russia, but the risks are too high, and the invested money are not certain to be back.
       However, we are already used to work in such conditions, certain revival on the market is observed, and that's a positive moment."
       The real estate exhibition is traditionally held in Ufa twice a year and became a remarkable event in business life of the capital long ago. Its main task is to show the work of experts in this branch and advise population on sales transactions and other operations with property.
       A new project represented this year was "Fair of vacant spaces", where owner and managers of commercial real estate offered shopping spaces, warehouses and office premises. Visitors could place their advertisements and sell apartments, houses, garages, exchange or lease residential and non- residential property on the "Personal advertisement board".
       Photo is taken from the website www. temernik. ru.