Image taken on 2007-05-11 08:30:14 by EXPO-RS.
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In the end of 2005, the employees of Moscow’s real estate agency Penny Lane Realty encountered the unexpected problem. Daily people called company with the question : “I want to purchase an apartment and immediately rent it out to clients, who I can talk to?” The answer was not easy, because sales and rent in Penny Lane Realty are responsibilities of two different departments. As a result for people involved in this type of situation company gave out a special phone number, which did not stop ringing the entire following year. Penny Lane Realty employees they were very proud of the way they resolved this problem, but suddenly bells ceased.
Number of people who desired to become private investors in real estate nowadays are very limited, and many of those, who were involved in this business past years, are now parting with the last properties they own, because the apartments in Moscow for rent are no longer bringing huge and stunning income gains in tens of percent annually as it used to before. Last week for the first time investments into real estate yielded in the plan of profitableness to long-term deposits into the banks.
Real estate market huslers depart, prices of real estate in Moscow are reducing – even if it just a little, but for a few months in a row. It seemed this was the desired results for Russian government, that this was what most of the Russian middle class wanted, which in had no way to allow themselves to purchase new apartments, after the last year’s jump of prices. But real estate experts are calm – in their unanimous opinion, the only consequence of present “stagnation” will be the clearer price separation of the apartments in Moscow into the elite and of the economy-class. The latter will fall in price, but not too much. There was no bubble, therefore, it won’t burst. It turns out, “valid” price on the real estate, which is not influenced by the investors, who purchase entire houses, but only by demands of future tenants and the proposal of builders – is not too differed from “invalid”, black market price. As one of the salesmen of real estate cynically noted, “Moscow still lags on the average price of the apartments behind New York or London”. Principally situation will change only, if many new houses appear on the market – but there are no prerequisites for this.
For more info please visit my website at www.eng.realtor.ru
Investing in real estate in Moscow could be the best investment you can make, and not in the long term but short term double digit gains are easily achieved.
Moscow 2007.
It is one of the most unique and exciting cities in the world – 17,000,000 souls live in a sprawling metropolis, seeped in history, seat of power of the Russian Federation, and home to 0ver 90,000 US Dollar millionaires, most of them under 50 years of age.
The Two Markets
The two Moscow real estate markets (residential and commercial) are indeed separated, but the profits possible in either market approximate each other.
For residential the greater part is composed of large apartment buildings, some of them with thousands of apartments within.
There is a smaller single home dwelling (often referred to as cottages, or dachas) which nevertheless can be built relatively cheaply compared to the sales price.
For the commercial market, there are new office buildings being built literally everywhere in Moscow, as well as shopping centers and industrial buildings.
The Opportunity
A simple visit to Moscow could convince the great skeptic that the construction boom is not even partially saturated.
The rents for either market do not yet approach London, but are closing very quickly.
The market is liquid, and there appears to be equally eager buyers and sellers. One can buy either independently, within a group, or fund. The returns have been more than impressive, and continues at a rapid rate
Why Moscow?
Moscow is a city of the future. Future is all about Moscow.
The population is young, growing, and highly educated.
The demand for both high quality commercial and residential property is unequaled in any European city, or any city for that matter.
Moscow resembles Hong Kong in the 1970s, London in the 1980s, and Los Angeles in the 1990s.
The political climate is more than stable, the laws and taxes have been adjusted to insure ownership continuity. The banks are learning the value of mortgage finance, and interest rates are becoming competitive.
How to Invest
Like any prudent investor one should see the lay of the land.
A week’s trip to Moscow can reveal much.
The major real estate companies (all of them) are resident in Moscow and provide a comprehensive viewing of their properties.
They can also reveal the local laws and regulations by which any investor and investment are regulated. It’s worth a visit. Moscow is alive and well and literally never sleeps.
How Much to Invest
This is a very subjection question. A 100 square meter apartment in Moscow can cost from $200,000 to $300,000 if purchased correctly as construction is about to start.
The sale of the same apartment in one year can at the moment find exceed $600,000 and even approach $1M.
It will not be difficult to make such an investment. One needs a real estate broker, a lawyer, and perhaps some personal assistant to translate and help you with local transportation.
Such a person is not difficult to find.
For larger and more impressive investment, consultation with the larger and well established real estate agencies can save you time, money, and later headaches.
Their specialists are on hand to guide you through the purchase process. For the larger investments, the multi-national real estate agencies (and they are all in Moscow) are your best bet.
Investing in real estate in Moscow could be the best investment you can make, and not in the long term but short term double digit gains are easily achieved.
Moscow 2007.
It is one of the most unique and exciting cities in the world – 17,000,000 souls live in a sprawling metropolis, seeped in history, seat of power of the Russian Federation, and home to 0ver 90,000 US Dollar millionaires, most of them under 50 years of age.
The Two Markets
The two Moscow real estate markets (residential and commercial) are indeed separated, but the profits possible in either market approximate each other.
For residential the greater part is composed of large apartment buildings, some of them with thousands of apartments within.
There is a smaller single home dwelling (often referred to as cottages, or dachas) which nevertheless can be built relatively cheaply compared to the sales price.
For the commercial market, there are new office buildings being built literally everywhere in Moscow, as well as shopping centers and industrial buildings.
The Opportunity
A simple visit to Moscow could convince the great skeptic that the construction boom is not even partially saturated.
The rents for either market do not yet approach London, but are closing very quickly.
The market is liquid, and there appears to be equally eager buyers and sellers. One can buy either independently, within a group, or fund. The returns have been more than impressive, and continues at a rapid rate
Why Moscow?
Moscow is a city of the future. Future is all about Moscow.
The population is young, growing, and highly educated.
The demand for both high quality commercial and residential property is unequaled in any European city, or any city for that matter.
Moscow resembles Hong Kong in the 1970s, London in the 1980s, and Los Angeles in the 1990s.
The political climate is more than stable, the laws and taxes have been adjusted to insure ownership continuity. The banks are learning the value of mortgage finance, and interest rates are becoming competitive.
How to Invest
Like any prudent investor one should see the lay of the land.
A weekâs trip to Moscow can reveal much.
The major real estate companies (all of them) are resident in Moscow and provide a comprehensive viewing of their properties.
They can also reveal the local laws and regulations by which any investor and investment are regulated. Itâs worth a visit. Moscow is alive and well and literally never sleeps.
How Much to Invest
This is a very subjection question. A 100 square meter apartment in Moscow can cost from $200,000 to $300,000 if purchased correctly as construction is about to start.
The sale of the same apartment in one year can at the moment find exceed $600,000 and even approach $1M.
It will not be difficult to make such an investment. One needs a real estate broker, a lawyer, and perhaps some personal assistant to translate and help you with local transportation.
Such a person is not difficult to find.
For larger and more impressive investment, consultation with the larger and well established real estate agencies can save you time, money, and later headaches.
Their specialists are on hand to guide you through the purchase process. For the larger investments, the multi-national real estate agencies (and they are all in Moscow) are your best bet. |
Moscow
September 9, 2010, 3:04 am
 Clear 7°Creal feel: 9°C
current pressure: 1026 mb
humidity: 81%
wind speed: 0 m/s N
wind gusts: 0 m/s
sunrise: 6:49
sunset: 20:03
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