Russia's real estate market is being hit by the financial crisis - with prices dropping dramatically since mid-year, and expected to fall even further in 2009.

The Russian real estate market is largely dependent on the financial market situation, which has recently fallen on hard times. The credit crunch has caused loan interest rates to rise significantly. This has had a direct impact on both developers (affecting the profitability of projects) and on consumer demand, which dropped as mortgages became more difficult to obtain, as well as due to a general sense of insecurity.

The Russia ’s government is planning to boost the charter capital of the country’s mortgage agency by more than $2 Billion. It wants the agency to use the cash to buy credits from banks and stimulate mortgage lending.

Moscow 's been tipped to overtake London as the world's most expensive place to rent an office, as a UK recession pushes prices down. Russian estate agents even see rates going up, as demand for quality Moscow property remains strong.

People in Russia have some experience of how to deal with a financial crisis. Only a decade has passed since the country experienced economic turmoil and the lessons have not been forgotten. Moscow may have become one of the most expensive cities in the world, but it's still possible to get around cheaply, if you know how.