MOSCOW REAL ESTATE

Property Investment in Russia and UK

Investment in world stock markets over the last year has not shown good results and many small investors are looking for new investment opportunities which can provide higher or more secure returns and more opportunities than in many other fields, with minimum risks.

The Moscow Real Estate Market has proved to be a sound investment option as property prices have been steadily increasing and are now running at 20/40% per annum for the new build sector and even higher in the secondary market of renovation and sale of older properties. Maximum growth has been in the rental market which is steadily growing due to a large increase in the number of Russian citizens who can now afford rentals in the higher end of the market.

In the United Kingdom the increase in property values over the last few years has been outstanding in this year, 2006, values are expected to rise by 5% with mortgages obtainable at 4.5%. Property purchase in the UK is particularly safe as all properties are registered at the official Land Registry and there cannot be any dispute over ownership.

Of particular interest is the Buy to Let market where properties can be purchased and let, thus providing sufficient income to pay the mortgage outgoings. The purchaser can then take advantage in the steady growth in value of his property for sale or reinvestment An example of one very lucrative scheme is illustrated in our Property Investment Fund section.

In this scheme the vendor guarantees to rent back the apartment you purchase at a 7.5% return per annum over two years, payment annually in advance.

It is now common practice for Moscow Real Estate constructors to fund their new builds by offering units at start up or in the early stages of construction at 50% of the fixed finished price. The balance payable on various terms during the construction period. The construction and administrative finalisation of the project usually takes about two years by which time the property will have appreciated by approximately 100%.

As an indication of the viability of this market, mortgages are now available from reputable banks for the first time on the Russian property market.

For investment in the Moscow or UK Real Estate Markets
see Property Investment Fund section,
please call us on UK (44) 1344-884262 or Moscow 8903-6742316
or use our feedback form