If there is an economic recession, is it wise to continue construction of buildings and complexes?

It depends on how financially strong the company is and whether the completed project will have any takers / buyers. If the answer is yes - then work must continue as they will have several advantages because of the recession too - like cheaper labour, cheaper materials, etc. 

Regarding my experiences, in worst times, selling economic properties is harder but selling expensive and luxury properties is even easier! Somehow wealthy people more investing in to luxury buildings in these times. It's probably because of they are willing to earn money by possible discounts/campaings while buying...

It is wise toexploit thepoor economicconditions inachievingsome of the goals

From a theoretical point of view Yes it's, Since the cost of rough materials would be in an excellent price including the labour factor as well. Real Estate is long-term tangible assets, investing in those kids of assets will show a huge positive impact in the long run.

yes it is good for economy and private producer (in long run, in short run you may face loss).

 

The real estate market is characterized by the fact that of all industries, it is most able to resist a crisis.  And fall in prices in the real estate market can be observed no earlier than 3-6 months after the crisis began. This is explained by the fact that real estate objects (buildings, premises, constructions) have a high period of market exposure (up to 1 year), because of what the prices and the way of thinking of sellers and buyers in this market differ by their high inertia.

 

The impact of the financial crisis on the real estate market is mainly due to a sharp decline in the availability of free money, loans and the investment programs of banks and enterprises. This naturally reduces the buying activity, that is, the demand, and since the number of objects on the market remains the same, then under the laws of the free market, prices fall. However, with the fall in prices, the inertia of the real estate market plays its positive role, the prices in the market decrease smoothly and slowly, as the crisis develops further. In addition, real estate prices even in a financial crisis do not decline too much, usually the maximum decline is 20-30% of the pre-crisis level. However, this inertia of the market also has its negative side, as well as recovery in the real estate market occurs much later than in all other industries.

 

 

It is impossible not to notice that the crisis period is the most profitable for people to invest in real estate. The gap between the real value of the property and the sounded at this time is almost 30%, whereas in the other period this gap does not exceed 10%.

Real estate market often reacts in advance (recession started here and the recovery should start here). The drop in demand may affect the largest, most expensive objects when a small apartment still are popular. Developers are always adapting to the needs of the market and the customer.This is a chance to use falling prices of raw materials and cheaper labor. You also can buy cheaper new land for next constructions.The last question: what is the required return on investment? We must remember it is different for each type of objects (flats, family houses, malls, etc.).

the main reason of increasing the construction cost is interruption of construction work. Demand of building and complex always exist in the market more or less. to avoid the increment of construction cost, stay at competition market i think continue construction of buildings and complexes is wise. 

This is dependent upon the cash reserve of the developer or if the developer is highly leveraged.

However, defining the right real estate products to offer to the market is instrumental in the go or no-go decision for any project even in recession periods, for example residential products will always have sustainable demand. 

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