Russian real estate business has been growing 10-15 % a year until now. The financial crisis put a crunch on high margins and profits of developers and agents. 35% of Moscow RE is mortgaged and banks used to provide home equity loans for apartments based on the market price of 7-20 thousand dollars per sq. meter. Now market is down 20-40 % and banks are left with questionable loans. We will monitor the residential construction bonds and inform our clients on any developments.