Can Foreigners Buy Property in Russia? - The Moscow Real Estate Company
10/13/2021, Moscow, Russia // PRODIGY: Feature Story //
Experts and entrepreneurs from around the world can benefit from Russia’s real estate market. Foreigners can easily buy property in Russia. However, there are some restrictions.
The good news is that a foreign citizen can legally enter Russia and purchase the property by getting a visa and a migration card. A temporary or permanent residence permit is helpful but not mandatory. The registrar requires typically certified copies of the foreigner’s passport and other documents.
Remember that buying a House does not immediately provide a foreigner Russian residency. Owning property in Russia can be a plus when applying for a residence visa or even citizenship, but it is never a decisive factor for the migration authorities.
The restrictions generally apply to foreign nationals purchasing particular types of land. For example, under Russian law, foreigners may not own land plots adjacent to international boundaries (including seaports) or within military settlements (which are closed for most Russian citizens also and require special permissions for residence and even visitation).
Visa holders or legal businesses sponsored primarily by foreign capital may not legally own agricultural land plots but may use them under a lease. Special permits and leases are required to access forestry fund land and natural land plots.
So, if you are looking for a home or an investment property, you will not face many obstacles. To summarise, you can buy any residential property in Russia, but not the ground on which it is built.
However, if you want to buy Russian land, you should ask your Russian land broker about your legal choices.
For those considering investing in the Russian property market, we’ve created a list of the most incredible deals in Moscow, the top Russian city for investors. To learn more about this fascinating subject, keep reading.
Moscow’s Real Estate Market from an Investor’s Point of View
Due to the global pandemic, the Moscow real estate market suffered a period of low demand at the beginning of 2020. Experts estimate that potential demand dropped by one-third during the initial shutdown. This, however, did not result in a significant drop in house values. After introducing a new state-backed mortgage program in April of last year, demand quickly returned to an upward trend, and with it, demand prices climbed.
2021 has demonstrated that, even under challenging circumstances, the value of homes in and around Russia’s capital will only rise, making them a sound investment.
When investing in the Moscow real estate market, one can employ a variety of tactics. The most popular are as follows:
Buy houses in local areas and lend them to renters for a steady income;
Buying commercial property and renting it to businesses for a profit;
Buying unfinished homes and reselling them at a greater market value;
Purchase properties in need of repair, renovate them, and resell for a profit.
Buying real estate in bankruptcy auctions is an exciting idea rarely discussed. When a person or company declares bankruptcy, their assets are auctioned off on an official online trading website. Real estate is one of these assets.
In fact, properties from all around Russia are constantly auctioned online and can be bought by anyone. Foreigners can also engage in bidding wars and win property titles.
Particularly in Moscow, buying auctioned homes for 30-50% of their market worth is feasible. An investor might make up to 230 percent of their investment in just a few months by reselling them for total market value. This makes auctioned property a unique investing instrument.
The current market value of a square meter of residential floor space in Moscow ranges from 3,000 USD in older buildings and districts away from the capital to 12,000 USD in brand new premium high rises with penthouses. A studio apartment within the Moscow Ring Road, which encircles most of the city, starts at 100,000 USD.
Thus, Russia’s capital city provides many prospects for investors of all budgets. Keep in mind that there is a high level of document fraud on the Moscow property market. Due to this unfortunate condition, all property sales in Moscow should be prudently supervised by a team of competent lawyers who will review all essential papers and ensure the buyer’s finances are safe.
We hope this brief overview was helpful to our readers and wish them well on their future financial trips.
Company Name — The Moscow Real Estate Company
Address — 21/5 Kuznetsky most str., Moscow, Russia
Release ID: 43507
There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this PR should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation.