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2022/05/05 11:28:12

Real estate (Russian market)

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Market Segments

Sale of real estate for debts at auction

Main article: Sale of real estate for debts at auction

Investments of Russians in foreign real estate

Main article: Investments of Russians in foreign real estate

2021

Leading Russian Housing Regions

In early May 2022, RIA Novosti published the results of a study of the Russian residential real estate market. According to analysts, in 2021, 92.5 million square meters. m of housing, which is 12.7% more than a year earlier. Each Russian accounted for about 0.6 m of area.

To assess the pace of housing construction in the regions of Russia, experts compiled a rating on housing commissioning volumes. The regions are compared by the number of square meters of housing introduced in 2021, in terms of one resident. This indicator varies from 0.06 to 1.772 square meters of housing per person, depending on the region.

Russian regions-leaders in housing commissioning

The results of the rating indicate that in 2021, the indicator of housing commissioning per person among leaders and outsiders differs tenfold. More than one square meter per person was introduced in seven regions of the Russian Federation: Leningrad, Kaliningrad, Moscow, Lipetsk regions, Krasnodar Territory, Tyumen and Sakhalin regions. Experts noted that four of the seven regions were in the leading group and according to the results of the rating of 2022.

At the end of the list of 85 positions were the Murmansk region and the Chukotka Autonomous Okrug with indicators of 0.070 and 0.060 square meters. m, respectively. A relatively low value was also recorded in the Magadan region (0.078 square meters. m) and the Kamchatka Territory (less than 0.2 square meters. m).

The report notes that compared to 2020, in all the listed regions, with the exception of the Kamchatka Territory, the rate of housing construction increased in 2021. In the Jewish Autonomous Region, housing was built by 111.7% more than in 2020, in the Chukotka Autonomous Okrug - by 82.2%, in the Murmansk region - by 42.8%. The most significant decrease in housing commissioning over the year occurred in Ingushetia (-37.9%) and the Oryol region (-30%).[1]

Sales in new buildings in Russia increased by 17% over the year - Rosstat

According to Rosstat, published on February 11, 2022, in 2021, the department registered 898.6 thousand equity agreements (DDU) in housing construction, which is 17% more than a year earlier, when the number of transactions was measured 763.8 thousand.

The head of the apparatus of the National Association of Housing Developers, Kirill Kholopik, commenting on the statistics of Rosstat, noted that sales of new buildings in Russia in 2021 updated the record that has been held since 2014.

Almost 900 thousand transactions were registered in the primary real estate market of Russia in 2021, which is 17% more than in the previous year
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The number of sales of housing under construction is the most important indicator determining the state of the housing construction industry. Stability of construction financing and subsequent commissioning depend on sales, he said.
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According to Rosstat's calculations, the most DDU is concluded in Moscow - 144 thousand, Moscow Region - 116.3 thousand, St. Petersburg - 75.8 thousand, Krasnodar Territory - 70.7 thousand.

At the same time, demand in the secondary real estate market in 2021 increased by 14.5%: 4.2 million sales contracts were registered, while in 2020 - almost 3.7 million, follows from Rosreestr statistics. Such transactions in 2021 were most often concluded in the Moscow region (273.3 thousand), Krasnodar Territory (271.5 thousand), Moscow (171 thousand), Sverdlovsk region (155 thousand) and in the Republic of Tatarstan (135.3 thousand).

According to experts surveyed by RBC, one of the main motives for buying an apartment in a new building is the opportunity to purchase housing at a lower price at the start of sales compared to the finished one. However, with the transition to escrow accounts, the cost of housing at the initial stage of construction became comparable to ready-made projects, which can be settled immediately. In the case of the purchase of a new building at the pit stage, it will take two to three years to wait for the completion of the house.[2]

The volume of housing commissioning in Russia updated the record

In 2021, 92.6 million square meters were commissioned in Russia. M of housing, which was a record figure. Compared to 2020, the market grew by 13%, Deputy Prime Minister Marat Khusnullin said at a government meeting on February 7, 2022.

According to him, thanks to this result, 4.2 million families were able to improve housing conditions in 2021 - this is about 10 million people. Khusnullin recalled that by 2029 the annual volume of housing construction in Russia should reach 120 million square meters. m

In 2021, 92.6 million square meters were commissioned in Russia. M of housing, which was a record figure

In addition, in 2021, permits were issued for the construction of about 40 million square meters. m of apartment buildings, which is 41% higher than the same figure in 2020, the press service of the Ministry of Construction of the Russian Federation said.

At the construction stage by the end of 2021 there were 94.4 million square meters. m of apartment housing. The urban development potential of the territories at that time was measured 241.3 million square meters. m of housing, an increase of 27.9% compared to the beginning of 2021.

The commissioning of housing in Russia in 2021 exceeded the initial forecasts of the Deputy Prime Minister. In November 2021, Khusnullin said that it is planned to introduce 86 million square meters. m of housing - the maximum annual volume for the country. In his opinion, the entry into the market of a new offer will allow, among other things, to combat rising prices for apartments.

According to Khusnullin, one of the tools to support housing construction is infrastructure budget loans distributed among entities under the Infrastructure Menu program. So, in 2021, 500 billion rubles were distributed between 81 regions. The Deputy Prime Minister in February 2022 specified that the money had already begun to be brought to the regions. Thanks to already approved projects, it is planned to introduce about 80 million square meters. m of housing, and more than 300 thousand jobs will be created[3]

Investments in commercial real estate in Russia increased by 52%

In 2021 Russia , more than 390 billion were invested in commercial real estate (rubles a record figure), which is 52% more than a year earlier, and 49% higher than the result of 2019, when there was no coronavirus pandemic. COVID-19 Such data analysts Knight Frank published at the end of January 2022.

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The year in the commercial real estate market of Russia was marked by an increase in the activity of users and developers in both the office and warehouse segments. The continued growth of demand and the strengthening of the deficit state of the market influenced the increase in investor interest in the facilities. The general positive state of the market and optimistic expectations from its further development have become the main drivers of achieving high investment volumes, the study says, excerpted by RIA Real Estate.
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Investments in commercial real estate in Russia in 2021 set a record

The largest share of investments - 65% - in 2021 fell on development sites. According to analysts, the continued high demand for housing and the active absorption of land available for construction create a kind of excitement around liquid land plots, which are becoming less and less.

According to the results of 2021, 14% of investments were directed to warehouse and logistics real estate facilities, 13% to offices, and 6% to retail objects. Most of the funds were spent on real estate in Moscow (67%), 29% was spent on the purchase of objects in St. Petersburg, 4% on objects in other regions of Russia.

The share of foreign investors in 2021 again decreased and reached a minimum level of 3% during observations, which is 3 percentage points lower than in 2020. The share of investment companies and private investors also decreased to 23% against 36% in 2020. At the same time, there is a noticeable increase in the share and further strengthening of this type of buyer as managing companies of mutual funds.[4]

The rise in prices for residential real estate in resorts is higher than the national average

The increase in prices for residential real estate in the resort regions was much higher than the national average. So, if secondary housing in Russia in 2021, according to SRG estimates, rose by 22.34%, then in the Krasnodar Territory, Crimea and the Kaliningrad Region growth was two to three times more. The absolute leader was Gelendzhik, where the average cost of secondary real estate for the year increased by 92.6%, to 196.8 thousand rubles. for 1 square meters. m Following are Novorossiysk (by 76.4%, up to 120.9 thousand rubles) and Anapa (by 65.9%, up to 114.1 thousand rubles).

In these cities, those who wanted real estate by the sea began to buy apartments, but could not purchase it in Sochi, analysts explain. Buyers of resort apartments traditionally flock there, but by the end of 2021, average prices in Sochi increased by 45.7%, to 246 thousand per 1 square meters. m, approaching Moscow.

Investments in Russian real estate have been record since 2013

Investments in Russian real estate in 2021 turned out to be a record for eight years - $5.4 billion. Compared to 2020, investments increased by 30%, according to JLL, published in mid-January 2022. CBRE estimated investor spending on Russian commercial real estate and housing construction sites at $5.3 billion in 2021.

The main investment growth in 2021 was provided by the St. Petersburg market. According to JLL, the increase here was 2.6 times, to $1.8 billion. In Moscow, investments grew by 8%, to $3.3 billion. In the regions, investment activity decreased by 25% year-on-year, to about $300 million.

In a conversation with Kommersant, the head of the JLL research department, Vladislav Fadeev, noted that the increase in investment flows to St. Petersburg is due to an increase in interest in land for residential projects. According to him, earlier developers bought mainly small plots, and in 2021 they focused on large-scale sites. In addition, the value of land in St. Petersburg over the year increased by 60-70%, which also affected the volume of investments, the expert adds.

According to Alexei Novikov, managing partner of Knight Frank & CIS, the most interesting segment for investments was residential development sites. He estimated that in 2021, 67.8% of the volume of transactions in the country was for the purchase of plots, while a year earlier this figure was 48.8%. This trend is associated with high demand for housing in new buildings, Novikov explained.

Investments in Russian real estate grew to a record in eight years

ILM partner Andrei Donbass called housing construction the most profitable business in the market - here up to 35% profitability and high liquidity. For example, investments in offices bring investors an average of 11.5% per annum, in logistics complexes - up to 11.75%, in retail facilities - up to 12%.[5]

In a dozen countries of the world in terms of real estate price growth

Structure of the apartment fund by number of rooms

2020

Investments of developers in residential real estate soared by 40%, to 77 billion rubles

The volume of investments of developers in residential real estate in Russia at the end of 2020 amounted to 77 billion rubles against 55 billion rubles in 2019. Thus, the growth was approximately 40%. This is evidenced by the data of the consulting company CBRE.

According to analysts, the residential segment accounted for 35% of real estate investments in the Russian Federation, which is 13 percentage points higher than a year ago. This rise was facilitated by the high activity of developers in acquiring plots for construction.

Among the segments of commercial real estate, the segment of warehouses became the most actively developing in 2020. Investments in warehouse facilities increased by 25% in 2020 to more than 40 billion rubles due to the preservation of demand for the purchase of warehouses for their own use, as well as large transactions for the purchase of objects for investment purposes. This segment accounted for 19% of investments against 14% in 2020.

According to the results of 2020, the volume of investments in office real estate increased by 10% to more than 70 billion rubles. The share of this segment increased from 26% to 32%. COVID-19 Trade real estate suffered the hardest from the coronavirus pandemic, investments in this segment showed a significant decrease of almost 80% compared to the value in 2019 (up to 16 billion rubles). Investments in hotel real estate fell by almost 40% to 11 billion rubles. The share of investments in trading facilities amounted to the minimum value since 2014 of about 7% in the structure of investments (by 22 pp below the level of 2019).

The study also says that one of the trends of 2020 was an increase in investments in facilities that require development and capital investments. The share of investments in such real estate increased from 33% in 2019 to 57% in 2020.

Since the beginning of the pandemic, the share of foreign investment has decreased significantly. The main volume of transactions is formed by investments of Russian companies. Their share increased to 94% in 2020 against 74% in 2019.[6]

The largest developers in Russia

At the end of October 2021, Forbes magazine presented an updated version of its rating of the largest developers in Russia. Analysts of the publication used data provided by the companies themselves, as well as estimates of the research centers "Cian" and Dataflat.

The largest developer of mass housing remained the PIK group with revenue of 294.6 billion rubles in 2020. As of December 2020, the land bank of the PIK group was 16.6 million square meters. m of unsold real estate.

In second place is the FSK Group of Companies, created by the son of the former head of Glavmosstroy Vladimir Voronin. The company has been on the market for 16 years, during which time it built more than ten million square meters of real estate. In 2020, the revenue of the FGC Group of Companies amounted to 129.8 billion rubles.

The magazine put the LSR Group of Companies in third position, the main owner of which is Senator from the Leningrad Region Andrei Molchanov. The company's revenue for 2020 is 118 billion rubles.

In the category of business class housing, Donstroy Group of Companies became the leader with revenue of 120.7 billion rubles for 2020. The remaining places in the category were distributed by MR Group, Ingrad Group of Companies, Pioneer Group of Companies and Kortros Group of Companies.

Capital Group took first place in the category of elite housing, its revenue amounted to 42 billion rubles in 2020. Also in this category were development companies Vesper, Inteko, Ant Development and the RBI group. Experts note that in the segment of mass housing, competition is developing most sharply.

According to Forbes estimates, the revenue of the 10 largest mass housing developers included in our rating increased by 25% (1.53 trillion rubles against 1.22 trillion rubles a year earlier), and the revenue of the five largest business-class housing developers - by almost 60% (488.1 billion rubles against 308.6 billion rubles).[7]

Property price increase by 14.0%

Leading countries in terms of real estate price growth in 2020

How prices for new buildings changed

2019

Growth of elite housing sales in Moscow to 102 billion rubles

In 2019, Moscow elite housing developers increased sales by 32% to 102 billion rubles, according to a report by the consulting company Knight Frank.

In Russia, banned daily rent apartments

In November 2019, Prime Minister Dmitry Medvedev signed a decree banning the provision of hotel services in residential premises of apartment buildings. The document, published on the official Internet portal of legal information, should actually entail the liquidation of the institution of daily rental housing, outlawing services like Airbnb.

According to the decision of the mission, it is forbidden to use residential premises for the provision of hotel services, industrial enterprises, as well as for missionary activities, unless otherwise provided by the Law "On Freedom of Conscience and Religious Associations."

Prime Minister Dmitry Medvedev signed a decree banning the provision of hotel services in residential premises of apartment buildings

At the same time, residents of an apartment are legally allowed to use residential premises for professional and individual entrepreneurial activities, if this does not violate the rights of other citizens and the requirements that the residential premises must meet.

The first deputy chairman of the State Duma Committee on Housing Policy and Housing and Communal Services Sergey Pakhomov explained that the head of government signed a decree because the regulatory acts are brought into line with the law on hostels, which entered into force on October 1, 2019. Pakhomov added that hotel services involve a number of requirements - linen, cleaning and mandatory registration of guests with the Federal Migration Service (FMS), and rental housing is a civil law relationship.

According to the head of the League of Small Hotels, Hostels and Tourist Housing in St. Petersburg, Alena Enova, the owners of hostels and mini-hotels in Moscow and St. Petersburg circumvent the ban on operating in residential buildings, re-converting their facilities into apartments with daily or long-term rent under a hire agreement, formally - without providing hotel [8]

Price dynamics for one-room apartments in Russian cities

The State Duma supported the sale of apartments via the Internet

On September 18, 2019, it became known that the State Duma Committee on the Financial Market approved a bill allowing for remote real estate transactions.

The initiative assumes that the buyer and seller of the apartment do not need to meet with each other, so they can be in different cities. The parties to the transaction will only need to contact a notary who will check the documents, explain the legal consequences of the transaction and testify their intentions to sell and buy real estate.

September 18, 2019 it became known that the committee State Duma the Financial Market approved a bill allowing for remote real estate transactions.

Further, a notary who works with the acquirer of real estate will send electronic documents for registration of ownership rights to Rosreestr. Confirmation will be ready after one business day.

According to Rossiyskaya Gazeta, the procedure for preparing for the transaction will remain the same, and the certification of the contract will take place online, through a specially developed secure communication channel for notaries.

The new format may be convenient for those who have long left their hometown, and the apartment has remained, or for those who have inherited housing in another region. By September 2019, in order to resolve legal issues with real estate, you must either go directly to the place, or issue a power of attorney for someone from the local.

Performing notarial actions remotely is one of the stages of creating a secure environment for electronic transactions. This is one of the goals of the national project "Digital Economy." So, on August 13, 2019, a law entered into force governing the procedure for applying digital signatures in transactions. Because of him, it became impossible to submit documents for registration of the transfer of ownership remotely. A transaction with a digital signature can be carried out only with the written consent of the owner of the property.[9]

Russia's place in the global real estate market

2013

Jones Lang LaSalle predicted that in 2013 the total investment in Moscow real estate will be about 7.5 billion. dollars Experts noted that the decrease in the indicator is not associated with a decrease in investment interest, but with a limited supply of liquid assets. In the first quarter of 2013, real estate transactions Russia amounted to $2.1 billion, 96 percent of which came from the capital.

2012: Moscow in the top 10 of the world in real estate investments

Consultants emphasize that the Russian market has significant growth potential. Thus, real estate investments Russia account for 0.4 percent of the GDP country, while in - Great Britain 2.1 percent. Record investments for Russia at the level of 7-8 billion dollars are significantly inferior to those of other European countries (in the UK in 2012, transactions were closed for $52 billion, in - for Germany $31 billion, in - for France $21 billion).

In the fourth quarter of 2012, the volume of investments in the Moscow real estate market (in finished objects) amounted to about $3 billion, which allowed the Russian capital to enter the top ten world leaders in this indicator for the first time. This is stated in a study by Jones Lang LaSalle.

According to experts, Moscow shared 8-9 places in the rating with Washington. In the first position was New York, where investors invested $9.9 billion for the quarter.

  • The second line with an indicator of $8.8 billion was taken by London,
  • the third is Paris ($5.6 billion).
  • Seoul ($4.7 billion) was also among the leaders,
  • Seattle ($4.4 billion),
  • Hong Kong and Tokyo ($3.2 billion each).
  • Closed the top 10 Los Angeles ($2.8 billion[10].

Earlier, the best post-crisis result for Moscow was the 11th line in the third quarter of 2011, when the volume of investments reached $2 billion. The worst is considered the first quarter of 2010 (43rd place, $230 million). At the end of 2012, Moscow took 13th place with an investment of $8.7 billion.

According to analysts, Moscow accounts for over 90 percent of investments in real estate in Russia.

Construction volumes

2020: Housing commissioning decline by 1.8% to 1.1 million meters

In 2020, 1.1 million square meters. in apartment buildings and residential buildings, a total area of ​ ​ residential premises 80.6 million square meters. meters. Compared to 2019, the volume of commissioning of housing decreased by 1.8%. 

Among the subjects of the federation, the largest volume of housing construction in 2020 in the Moscow Region (10.8% of the commissioned housing area throughout the country), Moscow (6.2%), St. Petersburg (4.2%), Tatarstan (3.3%) and the Rostov Region (3.2%). The low pace of construction and a significant decrease compared to the pace of 2019 is recorded in the Murmansk, Samara, Amur regions, as well as Karachay-Cherkessia and the Jewish Autonomous Region.

2012

Buying an apartment in Moscow

Notes