According to some economists, Russia is the typical victim of "Washington Consensus". The so-called "Washington Consensus", is the privatization of state-owned enterprises, trade liberalization, macroeconomic stabilization, strict fiscal and monetary discipline-based economic development model, also known as "shock therapy." In January 1992, Russia started to comprehensively increase price, in order to promote [Washington Consensus". Such freedom-based movement brought huge lose to Russia, including the real estate foam. In particular, with the advent of 21st century, the housing price in Russia soared at a fast speed. During 2000 and 2005, the housing price increased 253%. In 2006, the housing price in Russia went up by 53.8%, and the housing price of Moscow (the capital) advanced 93.8%. Russica's room rate stays on the top and makes common Russician hard to bear. There is statistics stating that tough living condition, insobriety and drug taking become the three major reasons causing Russician's marriage's fracture. At the beginning of 2007, a social investigation's result of Russica's public opinion research center shows that 60% Russician need houses urgently. The data of the Russian Ministry of Health and Social Development provided on July 13, 2007 revealed that Russian people`s average monthly salary in the year was US$ 500, and such figure was US$ 394.7 in 2006. Calculating like this, one person was unable to purchase one house even if they ate & drank nothing in their whole life.Summer’s Most Lovely business bags Fashion Style

Real Estate Law short period of time exacerbated the contradiction between supply and demand: The Russian prices rising, largely due to "shock therapy. What Is His Final Choice? Dreaming women handbags !" At first, Russia's "reform" is the precipitation until the 21st century, real estate legal system is still not established, so that real estate development companies and real estate market once more chaotic. To change such condition, Duma of Russia enacted Real Estate Law in 2005. According to such law, all real estate projects in Russia can be sold in the market after getting housing sale permit as of April 1, and developers can sign housing sales contract with consumers after getting land ownership, building permit right, and approved housing building solution. Besides, developers must bear the risk of construction. This law conducts strict regulation for developer's authentication qualification: Developers will be punished heavily if they don't check out on time and they modify and violate the contract by themselves: Once future built house doesn't fit for the contract, consumer has the right to check out and requires compensation.Be More Photogenic in Tote bags

"Property Law" itself is very positive, but after it launched, increasing the real estate in the short term supply and demand. Why Jennifer Garner all Pick womens wallets ? Who Knows! The survey shows: Before the promulgation of the law in Russia 20% of commercial housing was first built and there is no license, is often sold in advance and approval of procedures carried out simultaneously. However, after the promulgation of the new law, the behavior of pre-selling houses before being approved by relevant departments should be regarded as illegal behavior. Therefore, due to the new law`s implementation, lots of commercial houses projects under construction had to postpone their marketing, and the real estate projects in planning were also temporary postponed. According to statistics, compared to the real estate industry before the new law, the new houses` supply declined about 30%. Lack of market regulation and supervision intensified housing problems: under the severe cases of housing supply and demand, due to lack of regulation and supervision in the market, there were three factors that exacerbated the housing problems: (1) exchange control relaxation leading to hot money inflows, speculative real estate speculators to raise the price. As of 2005, the foreign capital inflow speed & scale in Russia witnessed skipping growth. In each quarter of 2004, the capital inflow was about US$7 billion, and such figure in each quarter of 2005 amounted to US$ 18 billion. In the housing market in Russia, at least 30% of housing trades aimed to invest capital, which led to the fast increase of housing price.

(2) developers monopoly and raise prices. In Russia, if in accordance with normal procedures, the developer from the start to complete the formalities to get the construction permit approval to spend at least 3 ½ years; Next, connect electricity, water, gas, heat also was in 2012; most developers rely on bank loans If the delay in completion of real estate, high interest and other costs were passed on buyers; together with building materials prices and inflation price increases, buyers have to pay the price together. 3) Unreasonable land allocation: Prior to October 1, 2005, Moscow had never conducted public tendering activities for building-use land, which led to local monopolization, and lots of building-use lands were acquired by the companies that had established close relationship with authorities. Artemyev (the president of Federal Antitrust Authority admitted that the illegal phenomena in housing land transferring filed were serous, and the cases of official colluding developers to conduct illegal trade frequently took place. To make the housing market develop in a healthy way and make all residents have their own houses, Putin government started to give up [Washington Consensus", and it adopted administrative measures to control the housing price. According to Putin and Edvedev, the housing price should be assumed by 40% of people.

To effective restrict the incline of housing price, relevant departments should make endeavor to increase house supply and adopt measures to strictly combat against the corruption behavior & lifting-up housing price behavior in housing construction and sales field. If the housing market can achieve the balance between supply & demands, housing price can declined to a reasonable level. The weakening of beating housing market by administrative means: Under the guidance of such idea, Russia adopted administrative means to directly intervene housing market over past years. 1) Russia strongly constructed economic & practical houses, in order to increase the supply of housing market. In 2006, Russia enacted [Economic & Practical Housing" National Special Planning. At present, 1.2 million households have the priority to purchased economic & practical houses, and these people mainly cover serviceman, the immigrants of countries in independent union, immigrants in extreme northern area (70,000 households), and the evacuated residents due to the construction of Chernobyl Nuclear Power Plant and [Lighthouse" enterprise accident. The main regulation tool was housing purchase permit.

Yakovlev (Russian Regional Development Ministry) pointed out that Russia will give priority to resolve the housing problem of the young couples aged below 30, and Russia will comprehensively promote housing purchase mortgage loan (especially the down payment problem). Now, 10% down payment mortgage loans out from the national budget and 30% by municipal and regional budgets to resolve the loan term of 20-27 years, and the remaining households borrow from the purchase. At present, the area housing the average price of about 14,000 rubles per square meter (1 U.S. dollar equals 28 rubles), a monthly income of more than 15,000 rubles in the family can apply for home loans, the monthly repayment, principal and interest burden of about 3000 rubles.