That inhibits the development of cottage townships?





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30.06.2011 08:30
Articles about real estate | That inhibits the development of cottage townships? What caused decline in activity in the market of cottage townships?
To answer this question the director of consulting company "RealEkspo Viktor Kovalenko at the press conference. held in LigaBusinessInform May 31.

-Development of cottage townships inhibits the lack of demand. And demand is low due to the fact that the economic policy pursued by the government is unstable. For example, the adoption of the Tax Code has significantly changed the business principles for the worse. It was again amended: return some rules of 2 old laws on profit tax and VAT.

Also, everyone understands that the inflation rate in Ukraine is not one that "draws" the government, but much higher. Therefore, the population in the period of the unstable situation and a deep distrust of the government will not invest in real estate.

Currently, Ukraine's economy and real estate, including a state of stagflation.

Stagflation (from Lat. Stagno - make fixed and inflatio - flatulence) - the state of the economy, characterized by a combination of simultaneous decline or stagnation in production with the developing process of inflation, reflected in rising prices of essential goods, products, services.

The decline in production, a crisis or depression lead to declining purchasing power, which is reflected in the decline in property prices.

Victor Kovalenko

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