The tipping point, or what happened after the summer of 2007. The main suppliers of cheap resources for the real estate market were Western investment funds. After U.S. mortgage crisis began to take more and more rampant, fewer funds remain willing to invest in the booming mortgage. Crane Mortgage Resources smoothly overlap and by spring 2008 almost completely closed. Funds invested in mortgages, of course, remained, but their volume has decreased significantly.
Banks have become less willing to provide loans to organizations with "weak" financial reporting, illiquid collateral, the people with informal income, increased interest rates, reduced credit limits. Real estate taken as collateral for loans, were assessed at a discount, which also led to reduce the possible volume of lending. Such measures are primarily reflected in the increase of expensive parts of the business and reduce profitability. Businesses were forced to pay more for borrowed funds, which have Many had plenty of time to raise interest rates. Along with rising interest rates and reducing credit limits, more companies began to revise the investment program and further development.
Previously planned expansion in the region many capital company revised its volume reduced or frozen projects. There was an involuntary reduction in demand for property. No do not think physical demand is not reduced, but it became insolvent. As the Russian proverb: "seeing eye – yes teeth itching. On the background of already contracted as a global crisis, more companies have become reduce their costs: to reduce office staff, support staff, the extra costs.