Investing In Moscow Real Estate

Moscow is one of the most exciting cities in the world and has a population of more than 17 million people and a city that is steeped in history. It is the capital of the Russian Federation and is also said to have more than a hundred thousand people who are called dollar millionaires.  

Real estate prices in Moscow have seen a fantastic growth in most areas and even returns of a hundred percent have been witnessed in some prime locations. Prices start from $20000 and are still very cheap compared to other European countries, and letting out flats is very easy and lucrative. A lot of foreign companies have come into Russia for commercial purposes and this has fuelled the requirement of both residential and commercial properties. The booming market has led to a lot of foreign financial institutions also entering the country and investing in real estate.

There are two distinct segments to the property market residential and commercial. The shortage of quality housing in Moscow has led to huge buildings of apartment blocks some of them having thousands of apartments in them. The commercial part of the market is apparent in a visit to Moscow and can be appreciated from the huge office blocks, shopping centers and malls and even industrial buildings under construction all over the city.

A Dubai based firm is developing a township adjacent to Moscow on 44000 acres of land and will spend about 11 billion dollars to build residential, commercial and recreational properties including hotels. Even local Russian real estate developers are putting in a lot of money into real estate and returns are expected to be enormous. Architects from all over the world are involved in the present buildings under construction and some of the buildings are very impressive because of the modern designs as well as the hugeness of buildings that is really breath taking.

Russia is a big producer of oil and gas and this has result in the fast expansion of the economy and therefore its effect on the real estate industry. The economy has led to the rise of a middle class with plenty of money and this in turn has increased the appetite and need for quality housing.  

This change in the economic scenario has led to mortgages being quite common in the market, which was not the case earlier. So a lot of new entrants in to the property market are able to get the necessary finance to enable them to invest in property. The earlier restrictions on banks and lending has now led to new laws that have enabled banks which have a lot of liquidity to lend easily to new buyers, more so because the laws now give a lot of default protection to the banks who are now more than eager to lend.

The economy in Russia is now emerging as a capitalist one and this looks as if it is going to create a boom in the real estate market that can be sustained for years to come. The market has given gains that have persistently remained in double digits and the requirement for quality housing and commercial offices remains vibrant, assuring a constant rise in capital value of any investment that you make in real estate.

So investing in real estate in Moscow can only fetch you returns that are not available elsewhere.