Russian investors are changing accommodation in St. Petersburg real estate abroad

Demand for Russian investors in real estate business in 2009, grew up. However, the Russians are in no hurry to commit the transaction to purchase the real estate business with high potential returns abroad, and only look after themselves interesting options, carefully choosing a reliable alternate airport in case of unforeseen developments in the Russian economy. This conclusion was made by representatives of the companies Nordic Development Oy, Alma Tour Realty, Kouroushi Bros Ltd in the discussion at the roundtable "The growth in demand for Russian profitable overseas property in 2009.: Statistics and Practice", organized by the magazine "Your Home Abroad" 14 in September 2009. Today, Russians are ready to buy first profitable real estate in Finland, Bulgaria and Cyprus. Market practices provide examples of recent deals where the client is selling two apartments in St. Petersburg, to use the proceeds to buy property abroad. However, such deals, according to experts, are not mass scale for two reasons: • investors are not willing to take a serious impairment of his St. Petersburg apartment, at all costs accelerate their sale; • have difficulty with the sale of assets under construction, in which were invested funds earlier. Business in Russian in Finland does not go according to CEO of Nordic Development Oy Vladislav Maltsev, before the crisis, Russian investors have invested surplus funds without thinking seriously about the future profitability of the acquired facilities, since all foreign real estate markets are in growth phase. At this time the Russians have invested money in overseas property is not always successful. In Finland, the value of land near the coast are still low, but in the years 2006-2007-2008. 10-20 hectares of land could be bought for 500-700 thousand euros. During these years, the Moscow and St. Petersburg investors purchased the land from the coast in Finland, based on the fact that they can build a cottage villages, despite the fact that, according to Finnish law, in these areas may be constructed for a maximum of 4 houses. However, the Russians believed that they could "negotiate" with the Finnish authorities to build on the shore of large volumes. However, this proved impossible - Finnish officials do not take bribes. "In Finland, investment in Russian do not pass. Successful examples of development of Russian business in this country can only be by the laws of Finland, there is an interesting business idea, the demand for products and services offered by the local population ", - says Vladislav Maltsev. To date, popular with Russian and British investors in Finland are chalets and hotel rooms are located at the ski slopes. The cost of such real estate is quite high - three thousand euros per square meter. m. The yield of these objects due to their demand in the rental market and 10% a year. The Russians are interested in industrial real estate, great demand these objects are among the Russian investors, who plan to withdraw their business in European markets. Certainly, in Finland you can buy and restaurant for 200 thousand euro, which will bring it to the owner of 5% of annual income. However, this is a good option "buying a job" abroad, such as profitability, this business will not, because the moral and the time spent on the content of the investor does not pay off the profit. At the moment, the main deal with Russian buyers in Finland - a property for recreation. Dramatic increase in real estate transactions for business yet, compared with last year, but sharply increased the number of requests. Interest is deferred nature. "Some people - are waiting for the sale of its St. Petersburg real estate, to invest the proceeds in foreign property. Other - lurking and waiting for the most opportune moment, "- said Vladislav Maltsev. Anyway, Russian investors gather information and prepare for the time when doing business abroad may be more appropriate than in Russia, despite a small but guaranteed, the profitability of the business abroad. Thus, today the foreign property market for the business interests of Russian investors as an alternate airport in case of deterioration of the situation in Russia. Russian myth of Bulgaria According to CEO of Alma Tour Realty in St. Petersburg, Lubomir Christ, in 2009, about 10% of all real estate transactions in Bulgaria accounts for investors from Russia. The share of commercial real estate the total of all completed transactions - 20%. "If you consider the applications of our customers during January-August 2009 as a percentage, 90% of potential Russian clients are interested in residential real estate and 10% - commercial. Last year, our customers are interested in residential real estate was 80% of the total, commercial - 20% "-sums up Lubomir Hristov. According to the company of Alma Tour Realty, In 2009, 70% of applications from potential Russian investors accounted for an application to acquire Bulgarian mini-hotels. These objects are available today, with budget of 800 thousand euros to 1 million 500 thousand euros. Acquisition of business on a smaller amount will purchase option currently working place abroad. Mini-Hotel in Bulgaria - a home in three or four floors, where the first floor of the living masters, while the remaining are appointed guest suites. In the area of ​​the mini-hotel usually on a small area with a pool. The profitability of such projects depends on their location. Currently, the maximum yield may be 10-15% per annum. The Russians are interested in mini-hotels in Bulgaria - those investors who have appeared in Russia free money and they plan to move to live permanently in another country. The Russians are interested in investment "fan" buying residential properties for their rental. "Recently, two of the client Petreburga purchased through us 8 apartments in Bulgaria on the sea, in Sofia, Velingrad. They plan to move to the country for permanent residence and to live on money from the lease purchase of flats ", - says Lubomir Hristov. Also among the most favorable sites for investment in Bulgaria expert calls the office premises in Sofia. Offices for rent in Bulgaria's capital will be in demand all year round. At the same time, amid widespread in 2009 to reduce rents in Bulgaria by 30-40%, the cost of renting offices in the capital rose by 10%. At the moment, for the purchase of office space from 50 square meters. m. to 100 sq. km. m. The investor will take between 60 thousand to EUR 150 thousand euros. Overall, in 2009, compared with last year, Russian investors are choosing to Bulgaria more economical options of commercial real estate. In 2008, committed Multimillion Dollar, now requests and transactions for commercial real estate is mainly up to 1 million - 1 million 200 euros. Cyprus, with the title and without According to executive director of the St. Petersburg offices Kouroushi Bros Ltd Mitshaytis Eugene, in 2009 the number deals with the Russians Cyprus real estate fell by 50%, but the average price of the acquired property has increased. Since last year, the average budget was Russian transactions - 150 - 200 thousand euros. Russian investors to invest in studio apartments, 1 and 2 bedroom apartments. Today the average transaction price - 250 - 500 thousand euros. Popular with the Russians in 2009 are maisonettes, bungalows and tanhausy. Currently 50% of Russians buy real estate in Cyprus with a view to their own recreation and residence. The other 50% consider real estate on the island as an investment destination. In this case, 100% of Russians who buy property in Cyprus, tends to keep their money safe. So, about a month ago one of our customers bought bungalow for 430 thousand euros for the construction phase for personal use and rent. According to the company Kouroushi Bros Ltd, is now a growing number of customers who plan to recoup the purchase made by putting the object in the lease. In part, this may explain the increase in the budgets of Russians buying property in Cyprus, as a rule, the more expensive the object, the higher the interest rate on its lease. During the season, which lasts nine months, real estate in Cyprus are in demand. Guaranteed rental income from renting through a management company is 5-6%. From an investment point of view, the most popular in Cyprus are Paphos and its suburbs, such as Tala, Peyia, Coral Bay area and the Akamas and Polis and Latchi area, where construction is booming housing and infrastructure. That these are the areas most in demand by Russian customers as leisure facilities, and for rent. In 2009, the secondary residential property market of Cyprus, a large number of objects at a price 20-30% cheaper than in the primary. "In 90% of the owners of such real estate is not a title - a document that entitles the owner to transfer ownership of the property by inheritance and use it as collateral for a loan at the bank. Purchase any property in Cyprus involves obtaining the owner's title. The title is given of the company - the developer municipality provided that in the course of construction has complied with all regulations. Many developers are violating the rules, so not every object on the island styled. According to the Ministry of Internal Affairs of Cyprus at the moment the titles have not been assigned 130 thousand objects of property ", - said Eugene Mitshaytis. According to the company Kouroushi Bros Ltd, in I and II quarters of 2009 the number of tourists in Cyprus has fallen by 40% and therefore significantly reduce the demand on the Russian commercial real estate. At the same time, many investors are still willing to invest in bars, restaurants and entertainment venues in Cyprus, but to find plots resembling those buildings is becoming increasingly difficult. The Russians started buying 2 times less than the real estate abroad According to the magazine "Your Home Abroad", obtained in the course of the survey 18 leading practitioners of the market, the number of transactions in most of the companies surveyed decreased by 50%. Pent-up demand is estimated to last year. In 2009, as compared with 2008, increased literacy of Russian investors, awareness, choice of country and an investment, the search facility and a decision on purchasing it. For all areas of real estate for sale abroad in this year's fair amount of reduction in purchases an average of more than 2 times. In view of the most expensive and cheapest deals in the 2008 budget Russian investor is 400-500 thousand euros in 2009, it declined to 150 -200 thousand euros. Reduced the number of deals with Russian foreign real estate in the price range of 200-500 thousand euros. In this case, there was a sharp increase in the number of transactions in low and high price segments. The crisis has brought to market real estate sector on the one hand, customers with minimal budgets - 20-50 thousand euro, ensuring market access for those for whom in 2008 it was closed. On the other hand, large investors looking worldwide highly profitable real estate in the price range of 500 thousand and above. For this category of investors in major purchase decisions of the object is not a country and property type, and the yield of the object. Full details of the results of a study of the magazine "Your Home Abroad", "Country-leaders of the Russian demand for overseas property in 2009," posted on the website edition of the "Our research»