Many people might be wondering with the rapid deceleration of the Russian economy that has occurred over the past six months, why hasn’t real estate dropped more drastically all over Russia, especially in Moscow? Although it has fallen somewhat, and certainly the construction industry and any new project have been certainly stopped in their tracks, it still has not dropped to the degree one might have expected. One major reason for that has been is that many Russians in times of economic uncertainty hang on to their apartments as a hedge against a depreciating Ruble. In many countries gold becomes a source of economic security, in Russia it is real estate. Real estate is lightly taxed compared to most countries in the West, so there is no real burden in keeping a property indefinitely. Russians are also increasingly hording Dollars and Euros at rates not seen for many years. Thirty one billion dollars is the figure households have increased their holdings of foreign currency over the past three months alone. What the immediate future holds in terms of the devaluation of the Ruble is hard to say, so many factors are involved it is as hard to contemplate intelligently as any major economy around the world.