Russian real estate: the news
Russian investment in real estate has definitely increased. In fact, we are talking about an increase inaugurated as early as 2019. The year in which the Russian economy effectively eliminated the disease of the international crisis. From this moment, real estate investments have increased. And this trend does not seem to want to stop. On a percentage level, we find 34% more transactions. For a total of 244 billion rubles. (Corresponding to $ 3.9 million).
But what is buying and selling encouraged by? Without a doubt, the entire system relating to Russian real estate gravitates around the country's macroeconomic context. In detail, we can say with certainty that expectations have definitely improved.
The very first point in favor of the revival of the Russian real estate is represented by the lowering of interest rates. By the Russian Central Bank. The lower level reached, compared to 2014, ensured better conditions for financing the debt, but above all to fuel the demand for investments. Which means new portfolios, ready to invest in Russia, but also additional guarantees for investors.
But let's take a step back. Why has the real estate sector managed to recover from the international crisis, so much so that it has become the driving force of the national economy?
In order to answer this question, we must start from an assumption. The real estate sector of any country is one of the first to enter a crisis when there are situations of great economic precariousness. The collapse in oil prices, the devaluation of the ruble, brought the Russian real estate to its knees. But, nevertheless, the Russian economy has managed to recover from 2016.
Companies and entrepreneurs have regained confidence in the real estate market, starting to invest again. The completion of the main territorial redevelopment operations allowed the increase in the average size of the transactions.
We are talking about 1.7 billion more, recorded in 2020 compared to an increase of 1.4 of the previous year.
However, the average size of the transactions is not yet reassuring to be able to talk about a real historical turning point in the Russian real estate. Indeed, it would be necessary to exceed 3.3 billion rubles, previously registered. But the fact remains that, unlike many other economic sectors, the real estate sector is also defending itself very well from persistent political tensions which, of course, would limit national real estate dynamics.
And while the sector is driven by an impressive boom of foreign investors, another sign of recovery is represented by a government project aimed at expanding pre-existing residential areas.
How will Russian real estate evolve? We will find out together, in the next guides, signed Realigro!
But what is buying and selling encouraged by? Without a doubt, the entire system relating to Russian real estate gravitates around the country's macroeconomic context. In detail, we can say with certainty that expectations have definitely improved.
The very first point in favor of the revival of the Russian real estate is represented by the lowering of interest rates. By the Russian Central Bank. The lower level reached, compared to 2014, ensured better conditions for financing the debt, but above all to fuel the demand for investments. Which means new portfolios, ready to invest in Russia, but also additional guarantees for investors.
But let's take a step back. Why has the real estate sector managed to recover from the international crisis, so much so that it has become the driving force of the national economy?
In order to answer this question, we must start from an assumption. The real estate sector of any country is one of the first to enter a crisis when there are situations of great economic precariousness. The collapse in oil prices, the devaluation of the ruble, brought the Russian real estate to its knees. But, nevertheless, the Russian economy has managed to recover from 2016.
Companies and entrepreneurs have regained confidence in the real estate market, starting to invest again. The completion of the main territorial redevelopment operations allowed the increase in the average size of the transactions.
We are talking about 1.7 billion more, recorded in 2020 compared to an increase of 1.4 of the previous year.
However, the average size of the transactions is not yet reassuring to be able to talk about a real historical turning point in the Russian real estate. Indeed, it would be necessary to exceed 3.3 billion rubles, previously registered. But the fact remains that, unlike many other economic sectors, the real estate sector is also defending itself very well from persistent political tensions which, of course, would limit national real estate dynamics.
And while the sector is driven by an impressive boom of foreign investors, another sign of recovery is represented by a government project aimed at expanding pre-existing residential areas.
How will Russian real estate evolve? We will find out together, in the next guides, signed Realigro!
