Russian Luxury Estate Market is on the rise28 Jul 2013, by Market in
“Prices were falling in early to mid-2009 and shortly thereafter began their steady growth. In Moscow now [in 2013], prime residential real estate is very expensive.”
Maxim Mokeyev, executive director of Moscow-based Evans Property Services, told CNBC
Prices per square meter in Moscow: up to 60000$
In Moscow, the average price per square meter is about 8,000$. In the Garden Ring area, the average price per square meter is about 14,500$. The most luxurious properties are sold for 50 to 60,000 dollars per square meter. The real estate market crashed in 2009 but has now become one of the most expensive in the world, even if it is still far from Monaco or the French Riviera.
Compare 4 international 30M budgets:[property_overview ref=”Mls-1425″ hide_count=true template=littlepics thumbnail_size=”sidebar_wide”] [property_overview ref=”ZPOC-T1455377″ hide_count=true template=littlepics thumbnail_size=”sidebar_wide”] [property_overview ref=”OWGU-T2480″ hide_count=true template=littlepics thumbnail_size=”sidebar_wide”] [property_overview ref=”OJZN-T1460″ hide_count=true template=littlepics thumbnail_size=”sidebar_wide”]
Moscow is now a very attractive market for private investors, both in the residential and commercial markets. Prices have risen twice during the last 3-4 years and continue rising, which allows investors to earn much. Rentals also bring much benefits in short terms. Wealthy Russians invest as well in Moscow as in Paris and London, and the Russian luxury real estate market is now made by local and foreign buyers. Compared to London or Hong-Kong, Moscow offer similar price ranges: Hong-Kong costs an average of 47500 dollars per square meter and London from 41 to 46000$. The market has now fully become international, buyers search for properties from West to East, mainly regarding risks and benefits; Moscow is completely integrated to this worldwide process.
The European companies that were interviewed are 4% more interested by the Russia market, rather than the European one.
The main difference between the luxury Russian market and the European market relies on risks, slightly higher in Russia than in Europe or US. Delays of construction, long-last freezes in the purchase process, inability to connect to local infrastructures (gaz, electricity and sewage) very rarely happen in Europe, whereas it happens most often in Russia, without being systematic. It can turn an a-priori ideal investment into a nightmare, so investors have to carefully choose their local real estate agent and lawyers to secure the purchase process.