Thursday May 17, 2012. 10:59

Get visa  |  Book accommodation |  Buy train tickets |  Find flights

ACCOMMODATION GUIDE ►

The Russian real estate market holds great promise and opportunity combined with a certain level of risk. Doing business in Russia, especially business with the large sums required to buy or renovate real estate holds many questions and potential pitfalls for the foreign investor new to Russia. The following helps to clarify and simplify the process of buying real estate in Russia by examining the key factors that affect price and quality of apartments. See also our list of FAQ that addresses most of the general concerns that investors have about the Russian market. This guide also introduces City Realty, a company with lots of experience in the Russian market that can consult or help with the process and paperwork. The market is booming here, and there is quality assistance available for the complicated though financially-rewarding process of property investment.

In order to make the best budget for a real estate investment as well as assessing properties or projects, one must analyze all the relevant factors that affect the value and price of the property. Below is a short list and abbreviated explanation of the most critical factors that influence an apartment’s price.

Location is one of the most significant factors affecting the price of a property. At the same time, location can be quite subjective, with many elements depending on the preferences of the buyer. The following focuses on the central and historical districts which tend to be the most attractive locations for foreign investors.

The biggest reason behind the attractiveness of centrally-located properties is the potentially lucrative rental market. The rate of return is positively influenced by the close proximity of tourist attractions, transportation options, the lack of bridges, and the closeness to large amounts of office space that need to house employees. There are also status and convenience factors that come with living in the center.

The windows and views form another strong price affecting factor.

• view onto water
• view onto a historical monument
• view onto a park or garden
• view onto a noisy street
• view onto a traffic-free street
• view onto a pedestrian zone
• view onto a very narrow street (poorly lit areas)

facade windows	water view	view onto a monument
view onto a monument	view onto a park	view onto a noisy street
view onto a traffic-free street	view onto a pedestrian zone	view onto a very narrow street

• Courtyards of the 1st, 2nd, and 3rd order
• Courtyards come in many varieties from large and lighted to small and dark. The nicest are large and well lit, then the middle sized, and ending with “the well”, a narrow and dark yard.
• Apartments may have several or all windows facing walls
• Courtyards may be green
• The remodeled "Euro" courtyard
• Some courtyards are gated and secured

1st, 2nd and 3rd courtyards	general light, large courtyard	general middle sized courtyard
middle sized but dark courtyard	very small, dark and dirty courtyard (the well)	all windows facing walls
green courtyards	green courtyards	repaired "euro" courtyard
repaired courtyards	gated or secured courtyard	gated or secured courtyard

double-side windows - a more preferable layout which allows making bedrooms in the noise-free rooms (a combination of factors)

• entrance from the street
• entrance through a courtyard
• safe and unsafe entrances
• varying conditions of entrances
• attractive vs. unattractive entrance
• very narrow or very steep staircase

street entrance	street entrance	courtyard entrance
foyer with security	mid level renovated entrance	decent entrance
bad entrance	very bad entrance	good entrance
beautiful entrance	relatively decent entrance	very steep staircase

• pre-revolutionary (with capital renovation)
• pre-revolutionary (without capital renovation)
• constructivism
• Stalin era buildings
• reconstructed buildings
• newly constructed buildings

pre-revolutionary with capital renovation	pre-revolutionary without capital renovation	constructivism
Stalin era buildings	reconstructed buildings	newly constructed buildings

• walls and foundations with superficial damage and cracking
• Level and quality of primary construction
  • reinforced concrete structure
  • reinforced concrete panels
  • metal-concrete beams
  • metal-wooden beams
  • wooden beams

• ground floor
• top floor
• attic floor
• 4th floor or higher with a lift vs. without a lift

Break point is less than or more than ten minutes

8. The Aesthetics of the Architecture and History of the Building or Area
9. The Property Itself

• quality of layout combined with possibility or ease of modification
• the height of the ceilings
• whether or not the apartment includes decorative or ornamental aspects
• apartments overall condition
  • capital renovation, structural repairs and change of piping still required
  • capital renovation with change of piping required
  • only cosmetic renovation required
  • no renovation required
  • Western standard renovation
  • Expensive/elite renovation, special interior design

10. Sale Type (for more details see FAQ)

• direct sale
• counter sale (seller requires alternative property or alternative property and cash)
• sellers' resettlement to less than 3 different properties vs. to more than 3 properties (when a communal apartment is purchased)

11. Fellow Tenants Have a Homogenous Social Level

12. Legal Difficulties Associated With the Apartment Including Illegal Redesign

Back to top►