Moscow, November 29, 2007 Russian Public Opinion Research Center (VCIOM) presents information concerning how the population of Moscow and Moscow region estimate the change in prices for residential real estate.

The majority of potential buyers of the residential real estate assume that the price for it in Moscow and Moscow region will do nothing but grow in 2007-2008. Only a small group of respondents expect a reduction in price. Nearly half of respondents (46%) think that the prices for real estate in Moscow region will grow slightly in the nearest year, not leaving the limits of 10-20%. Every fifth respondent (20%) identified a possibility of a significant price increase (from 20% up to 50% and higher) in residential real estate in Moscow and the Moscow region. A small share of respondents consider, that the prices for residential real estate can grow within the confines of 10% in the nearest to year (not exceeding the inflation rate). 13% of people participating in the survey believe that the prices for real estate in Moscow and its region will remain unchanged. An insignificant share of respondents (5%) assume that the prices for housing will fall within the nearest year. 10% of respondents found it hard to provide an answer to this question.

People, who have already invested money in new buildings of the Moscow region, constitute another group of respondents; they believe that even if the prices for residential real estate were going to vary, they could only rise. The answers that respondents from the two target groups gave tend to be similar on the whole, however none of respondents in this target group thought it possible that the prices might fall. Nearly half of people who participated in the survey (47%) assume that the prices for the real estate in Moscow region will slightly grow in the nearest year, within the limits of 10-20%. Just as in the previous group of respondents, almost every fifth respondent (22%) pointed out a possibility of a significant rise in prices for residential real estate in Moscow and the Moscow region (from 20% up to 50% and higher). A little smaller share of respondents (13%) identify that the prices for real estate objects will grow very slightly in the near future, and this growth will only be hardly noticeable (up to 10%). Nearly every tenth respondent (9%) believes that the prices for housing will remain unchanged within the nearest year. 9% of respondents found it hard to provide an answer to the question stated.

The initiative All-Russia opinion poll was conducted by VCIOM in October 2007. 2400 of people living in Moscow and St. Petersburg who are planning to purchase residential real estate within the next 3 years (1200 respondents,) as well as those who recently bought a flat in a new building, that passed the quality control no later than 5 years ago, and live there at the time of the survey (1200 respondents), were interviewed. The statistical error does not exceed 2.8%.