Luxury Home Prices in Moscow fell 60 percent in 2009

The latest report by the Kalinka-Realty Consulting Agency in Moscow states that some segments of the luxury real estate market in Moscow fell in price by as much as 60 percent in 2009, with properties that were previously priced at $5 million plus being available at less than $2.5 million.

The recession has hit Russia hard with many of the richest entrepreneurs  going cap in hand for government loans, much like the Western world. Strict stipulations were attached to many government loans, and it will be interesting to see just how much private enterprise stays in private hands after the loan deadlines pass – which will be this year in many cases.

In fact, the Kalinka agency only started just 10 years ago, as the luxury real estate market in Russia was just starting to switch from government officials to private individuals. Should be an interesting 2010 – seeing as the amount of canceled building projects in Moscow and failed construction firms continues to rise.