After a property slump in the late 90s, Russia's economy is now in the rise.
As the economy grows, both the residential and commercial property markets in Russia are improving rapidly.
Cities such as St Petersburg and Moscow have seen lots of investment, both from the Russian government and foreign investors including many large companies from China. This has resulted in lots of commercial development and an increase in job availability. People have more money to spend and modern housing is in high demand. Companies such as First Choice Properties Russiacan give you further advice about purchasing property.
The areas surrounding the major cities such as Moscow and St Petersburg are popular despite being expensive, which makes property rental an ideal option for many. Employment opportunities are good and wages tend to be high enough to support expensive property rentals and mortgages. The western areas of Russia are the most in demand due to accessibility and the infrastructure.
Residential property in the city usually consists of apartment buildings due to lack of space. Larger houses are available on the outskirts of the city and although these are much more expensive, rising wages are making them more affordable. House prices are expected to rise due to a slowdown in the building of new homes.
St Petersburg has always been a popular tourist destination because of its stunning architecture and rich history. This popularity is expected to increase with the building of two theme parks. This will in turn have an impact on demand for property. Companies such as First Choice Properties Russiacan help you to find popular areas to invest in.
Commercial property is also in demand due to the increase in the amount of business investment in the country. There are many office blocks and factory spaces which are available to buy, which you can then rent out to businesses. The retail sector is also growing. With an increasing number of people with a disposable income to spend, the demand for retail space is also expected to grow.
Although the return on commercial property may not be as high as that for residential property, it will still make a good long-term investment.
Many foreign workers coming to Russia are buying property for the short term rather than renting due to the quick return they can get on their investment. This means that apartments and homes in sought-after areas regularly become available for those interested in property investment.
The investment opportunities are not restricted to the major cities. Smaller cities such as Ulyanovsk, Ekaterinburg and Kalininggrad are also enjoying economic growth. Kalininggrad is another popular tourist destination and investment opportunities include apartment and hotel developments. With plenty of investment in tourism and the retail sector, high demand for property here is likely to continue.
Investing in Russian Property