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Russia Property

Property prices on the turn in one of the world's emerging market giants makes investors sit up and pay attention.

Search for Property in Russia

Search for Property in RussiaThis section lists current Russia properties for sale. Here you can view photographs and full details on our carefully selected properties and take a first step to finding your ideal property in Russia..

Investment Property in Russia

Investment Property in Russia

Research why Russia property is now such a worthwhile opportunity as a lucrative worldwide property investment market.

Guide to Property in Russia

Guide to Property in RussiaA guide to Russia for quick reference on facts and figures, as well as economic and cultural information and the practicalities of your property purchase in Russia.

Property News in Russia

Property News in Russia

Keep up to date with all the latest Russia property and investment news and articles. Provided by and carefully selected sources from around the world.

Investment Research in Russia

Investment Research in Russia

Find out the reasons why Russia is such a promising investment option and what to expect in terms of investment returns.

Investment Locations

Investment Locations

In addition to Russianian property opportunities, we offer a wide variety of worldwide real estate. Select here an area to start your search for your chosen location.

Russia is the largest country in the world, bigger than the USA and the rest of Europe put together, and with a population of 142 million people it is also the 9th most populous country in the world. It also has the world's largest natural gas reserves, the 2nd largest coal reserves and the world’s 8th largest oil reserves, making it the world's leading natural gas exporter and the second leading oil exporter.

Russia also has huge amounts of mineral reserves including platinum, nickel, aluminium, iron ore, copper gold and diamond. Oil, natural gas, metals, and timber account for more than 80% of Russian exports abroad. Revenues from oil and gas account for 50% of Russia’s budget. This makes Russia constantly attractive to investors, and with property prices falling by around 20% during the crash property investors are keen to get in on the action.

Russia Property Market Overview

As we all know, Russia is one of the BRIC economies, which groups Brazil, Russia, India and China together, but as we also know foreigners cannot buy property in all of them freely. In fact only Brazil and Russia allow foreigners to buy property relatively free of restrictions, within that Russia has the added benefit of a much more developed mortgage market – although lending remains constrained in the country at present it is possible for foreigners to secure mortgages in the country, provided they meet the criteria.

Unlike most property markets, where the division between primary and secondary markets is something that is intimated or discussed by commentators, in Russia the residential property market is actually divided into the primary and secondary markets, with prices being much higher in the former than the latter. It is important to pay careful attention to this division when looking into buying Russia property, because it provides another way of splitting metrics to help investors choose the right property at the right time to maximise gains.

That is not the only split in the Russia property market, which has more than most. Russian property buyers are better known for buying in other countries than they are in their own, while foreign buyers are recognised as driving a lot of the price growth in the Russian market over recent years. Then you have the split between Moscow and the rest of the country. This was epitomised in the latest data when prices of resale apartments in Moscow increased by 4.02% year on year in Q1, while prices of resale apartments in St Petersburg (the second biggest city in Russia after Moscow) fell 0.74% (-4.43% inflation-adjusted) during the same period.

Russia Property Investment

Russia property got flattened last year, and now investors are snapping up bargains in the recovering economy. As we have seen in several Eastern European economies, hard-hit property markets combined with a swift and strong economic recovery presents investors with a good opportunity. Latvia saw property prices fall 50% between 2008 and 2010, but as its economy proved more resilient to the crisis it went from being one of the worst performing property markets to one of the fastest growing in 2010 as investors feasted at bottom.

The Russian economy suffered a very short recession in 2009 and has grown strongly ever since, with IMF data showing growth of 4.3% in 2010 and 2011. According to official data from the Federal State Statistics Agency (Rosstat) the Russian economy grew by a healthy 4% in the second quarter of this year, down from a growth of 4.9% year on year in Q1. The IMF is predicting 4% growth for the year ahead although the EBRD predicts growth of just 3.1% for this year.

While the economy has been pretty resilient to the downturn the property market was hit pretty hard. According to Rosstat the average price of all apartments across Russia was 52504 rubles (£1,059) per sqm in2008, in 2011 this price had fallen to 43686 rubles (£881) per sqm. Luxury apartment have fallen even more sharply from 69,612 rubles (£1,404.11) per sqm in 2008 to 49,042 rubles (£989.201) per sqm last year.

In Latvia the combination of low prices and a resurgent economy took it from the bottom of the Global Property Guide table with prices down 59.70% year on year in Q3 2009 and ending 2009 down 52.81%, to topping the table with prices up almost 20% in Q3 2010 (in Q1 prices were down 31.72% year on year, showing the rapid turnaround in the market).

Such a turnaround may already be underway in Russia, in other words you may have missed the bottom if not the boat. According to the latest data from Rosstat, the price index for all resale apartments in Russia rose by 7.88% (3.86% inflation-adjusted) during the year ending Q1 2012, the fastest annual growth since Q1 2009.

Reasons Why Russia Property is a Good Investment

  • Strong macroeconomics:

    • World's 7th largest economy by purchasing power parity (2010)
    • World's 2nd highest gold and foreign exchange reserves (US$479.4 bln - 2010)
    • Significant Government Reserve (US$60.5 bln - 2009) and National Welfare (US$91.6 bln – 2009) Funds

  • Politically stable system:

    • Long period of prudent economic and social policies
    • Respectful and fair foreign relations policy
    • Russia is a member of G8, the United Nations, APEC, SCO, and the CIS

  • Social stability and nationwide support:

    • Steadily rising quality of life
    • Prudent social policy devoted to improving all aspects of quality of life
    • The country has a tolerant multi-ethnic, multi-cultural and multi-confessional population.

  • Vast Natural Resources:

    • 32% of explored world reserves of natural gas (1st place)
    • 35% world gas production and exports (1st place)
    • 1st place in oil production and 2nd place in oil exports
    • 18% of world reserves of oil (7th place)
    • 23% of explored world reserves of coal (1st place)
    • 47% of world reserves of peat (1st place)
    • 23% of world forest resources (1st place)
    • 1st place in sodium salt reserves and 2nd place in potassium salt reserves
    • 1st place in drinking water reserves and 2nd place in fresh water reserves
    • 1st place in the stocks of pollacks, crabs and sturgeons in the 200 mile economic zone and 2nd – 3rd place in the stocks of codfish, herring, capelin, polar cod, salmon, etc.
    • 1st place in world explored reserves of tin, zinc, titanium and niobium
    • 1st place in world reserves and production of nickel ore and refined nickel
    • About 28% of explored world iron ore reserves (1st place)
    • 1st place in steel exports and 3rd place in exporting rolled metal products
    • 1st place in primary aluminum production and exports
    • 1st place in nitrogen fertilizer exports, 2nd and 3rd place in the exports of phosphate and potash fertilizers, respectively
    • 1st place in world diamond reserves and 2nd place in world diamond production
    • 1st place in actual volume of diamond exports
    • 1st place in explored world silver ore reserves
    • 2nd place in explored world gold ore reserves
    • 2nd place in explored platinum ore reserves and 1st place in exports of platinum ore
    • 3rd place in explored world copper and lead reserves
    • 3rd place in explored world wolframium and molybdenum reserves
    • 10% of world reserves of uranium (9th place)
    • 40% of world reserves of nickel
    • One of the biggest world reserves of fresh water
    • 1st place in the world in per capita natural resources

Homebuyers in Russia

Foreign homebuyers in Russia are typically of the business persuasion, either they are entrepreneurs looking to move their business into Russia because of its geographically central location or some other reason possibly related to the long list above. Apart from businessmen it is usually the wealthy jet-set who buy in Russia, with both businessmen and the latter favouring Moscow.

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