All real estate in Russia

Location, climatic conditions, and economy

Russia (abbreviation of the Russian Federation) is a country located on the mainland of Eurasia (East of Europe, North Asia). It occupies a huge area and has a wide ethnocultural representation.

The climate depends on the relief, the influence of air masses near mountains, seas, in particular, there are several climatic zones: Arctic (glacier, polar-desert zone), subarctic (forest-tundra, tundra), temperate and partially Mediterranean (sub-taiga, taiga, broad-leaved forests, steppe, forest, desert sub-Mediterranean zone). Temperatures in January in different regions have significant fluctuations from +5 to −50°C, in July - from 0 to +25°C.

The following areas of the economy are most significant: mining and processing of hydrocarbons, metallurgy, agriculture, food production.

The real estate market in Russia in August 2022 continued, emerging in May, a downward trend in prices in the primary and secondary markets. Discounts on residential facilities in new buildings in the central region increased to 10–25%, developers carry out shares taking into account the location of housing, area, and layout. The reason is a drop in the demand of the population for real estate in Russia due to the economic crisis, an increase in uncertainty regarding income planning. Russian experts ascertain a decrease in demand by 20%. At the same time, prices did not decrease in all projects (building materials are becoming more expensive, there are logistic problems with the supply of imported products, and the cost).

There has been a tendency to reduce supply. Sale of real estate in Russia falls in terms of transactions. The construction market is close to stagnation, as related industries sag (metallurgy, furniture production, transport services). Previously, experts have already predicted deflationary processes in the primary real estate market. Secondary real estate in Russia also begins to fall in price: in megacities (a million or more population), the average value of real estate in Russia sold by owners in July decreased by 0.1% compared to June. The fall in prices covered not all regions and not all segments. Small area apartments have risen in price in a number of regions and cities in sizes from 0.1 to 20% and even higher. However, experts also warn that residential real estate in Russia has reached its ceiling at prices. Some officials and economists do not lose hope for the autumn revival of demand. Customer reviews confirm that the apartments in the residential complex comply with the quality standards adopted in the country. First of all, domestic investors from the outback, seeking to find the best locations for work and accommodation, migrants from the post-Soviet space, who consider the country attractive, seek to buy real estate in Russia.

The commercial real estate market has not recovered: shopping centers showed an anti-record for the number of square meters put into operation (against the background of the departure of foreign brands, their construction has become less profitable for developers), the area is often not involved in the secondary market, the hotel segment is empty and the payback period has been significantly increased - 10-15 years and more.

In the land market, demand for land in the first half of 2022 increased by 8-12%. In conditions of instability of the economic situation, many prefer not to overpay for finished houses, but to build on their own. Plots for individual housing construction - the most popular, slightly less interesting are agricultural areas, land is not in demand for industrial needs.

The price of real estate in Russia (where it is profitable to invest):

The price per square meter for apartments in various cities (secondary and primary real estate) is respectively:

Moscow - 6900 and 7900 USD, St. Petersburg - 3200 and 3900 USD, Khabarovsk - 2800 and 1,300 USD, Novosibirsk - 1800 and 2000 USD, Krasnodar - 1,700, and 1350 USD.

It is most profitable to invest in Moscow and St. Petersburg. In other regions the situation is ambiguous, it can change, which is influenced by the following factors, in addition to location: economic situation, level of education, behavior of power structures, crime, quality of interethnic relations and much more.

The spread of prices for cottages by regions of the Russian Federation is large, for example:

• Krasnaya Polyana (Krasnodar Territory), 1500 sq.m, 60 acres of land - 40 million USD,
• Yeisk (Krasnodar Territory), 50 sq.m, 100 acres - 85,000 USD,
• Moscow Region: 850 sq.m, 100 acres - 19 million USD, 80 sq.m, 12 acres - 42000 USD.

Given the possible price change, it is advisable to use only relevant information.

Real estate site in Russia

While choosing real estate, it’s important to rely on expert information. GEOLN.COM (with a convenient search interface) contains a helpful and trustworthy real estate catalog in Russia.

Real estate types in Russia for sale

• residential (apartments, individual houses);
• commercial: manufacturing (industrial enterprises), trading (shops, supermarkets), warehouses, offices, etc.;
• land plots.

Purchase of real estate in Russia by foreigners (nuances)

Foreign citizens can formally buy any real estate. However, there are still some restrictions: it is impossible to acquire agricultural land, in the forest fund, on the territory of nature reserves and defense facilities, in closed areas. It is also impossible to buy real estate in cities with a special regime. Since March 2022, a special procedure has been established for real estate transactions involving citizens of foreign states, committing, as indicated, “unfriendly actions against Russia”.

Real estate investments in Russia are a promising investment if the goal of permanent residence in this country is set, a location visited by students, migrants who are ready to rent premises is chosen. Serious risks associated with the economic crisis, problems with the restriction of political freedoms, changing legislation, and the general psychological atmosphere in society should be taken into account.