Foreigners are increasingly choosing Russia to buy real estate

In recent years, we have seen a steady increase in the interest of foreign citizens in purchasing real estate in Russia. This trend is confirmed by official statistics: according to Rosreestr, in 2023, foreigners bought more than 19 thousand objects, which is 6% more than in 2022. This dynamics indicates that the Russian real estate market remains attractive for foreign investors and people who want to acquire their own housing in our country.

Kirill Zykov / RIA Novosti

A number of factors explains the growth in demand from foreigners. First, real estate prices in Russia are still competitive with many other countries, especially in large cities. This makes the purchase of an apartment or house in our country a profitable investment for foreigners. Secondly, the acquisition of own housing makes it possible to receive a stable passive income from renting out real estate. Many foreigners see this as a reliable way to diversify their investment portfolios.

But financial gain is not the sole motive for buying real estate in Russia. For a significant part of foreigners, this is also a way to simplify and legalize their residence in our country. Owning an apartment, it is much easier to get social preferences – to receive benefits or subsidies, to sign up for a specialized doctor, to get children into schools and kindergartens. With rented housing, there are much fewer opportunities, and the paperwork procedure itself is much more complicated.

The geography of preferences of foreign buyers is very extensive and covers both the metropolitan regions (Moscow, St. Petersburg, Moscow region, Leningrad region) and other attractive locations – the Urals, Primorsky Krai. The choice of a particular city or district depends on a number of individual factors: the presence of social ties (relatives, friends, acquaintances), the level of salaries and cost of living in the region, the demand for the professional skills of a particular person in the local labor market.

As for the type of housing purchased, here the preferences of foreigners are distributed as follows: 80% buy apartments in the secondary market, 13% choose new buildings and only 7% buy individual residential buildings. The popularity of the secondary housing is explained by the desire to enter the finished housing immediately, without waiting for the completion of construction and without spending money on renting temporary housing. Buying an apartment in a new building at the initial stage of construction can be beneficial in terms of investment prospects, but here you need to be prepared for long waits and additional costs for rental housing. Individual housing is still a niche product for foreigners and is mainly interesting for those who already own a city apartment.

Of course, the acquisition of real estate in Russia in the status of a foreign citizen is fraught with certain difficulties and restrictions. It is necessary to study carefully all the legal nuances, drawing up documents correctly, and choosing a reliable developer or seller. But with a competent approach and professional support of the transaction, buying an apartment or house can become a reliable investment and a way to improve the quality of life in Russia.

By Zarita Akmatova, head of the real estate agency “Planet-312”

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