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The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
The Russian Overseas Property Market by AIgroup
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The Russian Overseas Property Market by AIgroup

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A how to enter guide for developers and agents to the Russian overseas property market. Russian media and internet statistics specific to the International Property sector

A how to enter guide for developers and agents to the Russian overseas property market. Russian media and internet statistics specific to the International Property sector

Published in: Real Estate, Travel, Business
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  • 1. The Russian overseas Property Market Presented by Kim Waddoup CEO, aiGroup, Russia http://www.aigroup.ru
  • 2. The Russian overseas Property Market
    • This presentation will explore the general market to help you to form an appreciation of the desires and requirements of Russian investors and their current buying habits.
    • We will look at the countries that are most popular for Russian buyers and explain why.
    • We will explore the Russian market place, how to promote/market your company and how to deal with initial enquiries.
    • The conclusion will offer some specific recommendations, including what does a Russian client look for, how to reach them, gain their trust and complete the sale.
  • 3. Brief history of current Russia
    • 1991 the end of communism rule and first free election for a democratically elected President, Boris Yeltsin
    • 91-98 troublesome years for an emerging country/economy
    • 1998 August economic crisis
    • 2000-2008 The Putin Years
    • 2008-the present The Medvedev/Putin tandem
  • 4. Current economy & predictions
    • Russian economics – heading for higher growth
    • (Morgan Stanley Report July 2011)
    • Growth in Russia is poised to accelerate to 5% in 2011 and 5.5% in 2012
    • Retails sales and industrial production continues to increase
    • Wages disposable income & consumption are increasing
    • Inflation under control and falling(max 8%)
    • Unemployment is falling (6.1%)
  • 5. ‘ Local Business Politics’
    • The business environment in Russian remains erratic. For many businesses high capital gains are relatively easily achievable, however corruption and hardly legal pressures can be brought on to companies operating in Russia.
    • Many businesses rely on off-shore alternatives ensuring security for profits and capital gains.
  • 6. Where do Russians buy and why
    • Statistics provided by 1-property based on searches for International Property for June-August 2011 the most popular requests are:
    • Bulgaria 17% Easy destination, language, similar mentality
    • Spain 14% Sun, prices, lifestyle
    • Turkey 11% No visa, traditional holiday destination
    • Montenegro 10% popular destination
    • Italy 6% primarily Calabria(price)
    • Czech Republic 5% Mostly buy to let
    • Cyprus 5% traditionally popular
    • Germany 4% Mostly buy to let
    • Greece 4% bargain seekers
    • France 3% also a traditional market
    • Others 21%
  • 7. Where do Russians buy
    • Statistics from Yandex, Russia’s largest search engine based on searches for Property abroad May-August 2011:-
    Request May 2011 June 2011 July 2011 August 2011 Total % Increase in 2011, % property in Bulgaria 42035 41914 40413 42057 166419 32 37,1 property in Spain 17215 16769 17933 18420 70337 14 23,0 property in Montenegro 11229 11561 12074 11978 46842 9 20,9 property in Cyprus 7773 7455 7460 14224 36912 7 56,5 property in Turkey 8493 7471 8725 8676 33365 7 30,5 property in Italy 7505 7142 7718 7660 30025 6 38,6 property in Germany 6657 6485 6796 7601 27539 5 52,5 property in Greece 4728 6173 5472 4997 21370 4 29,7 property in Finland 4218 4079 4832 5564 18693 4 30,3 property in USA 4097 4004 4503 5941 18545 4 48,8 property in Croatia 3651 3978 4597 4296 16522 3 25,4 property in France 3576 3921 4267 3892 15656 3 34,2 property in Israel 1735 1581 1627 1648 6591 1 6,1 property in Dubai 858 1030 937 931 3756 1 50,8
  • 8. Who are your Russian clients/ the rising Russian middle class
    • The Russian middle class is increasing very fast especially in the major cities. This sector represents vast potential for overseas property.
      • The majority own their own apartments
      • Low monthly running costs(water, gas, heating, electricity)
      • Salaries are rising creating more disposable income
      • Minimal household debt
      • General income tax at 13% on declared(!) incomes
      • Less than 8% have mortgages to repay
  • 9. What investments are Russians generally looking for?
    • In a recent survey we asked Russian investors what their main reasons were for investing in property:
    • As a safe investment 55%
    • Buying for own enjoyment 30%
    • Buying to let/rent (create income) 15%
  • 10. How to promote/market in Russia
    • Create and finance your own full time office in Russia
    • Utilise the Russian print media
    • Internet advertising
    • Participate in existing Property Shows
    • Create your own seminars/presentations
  • 11. The Russian overseas property media landscape
    • Russians still love to read magazines! There are several specialized publications but with a lack of an independent reporting organisation, transparency is virtually non-existent. Most publications are free of charge but can also be purchased from specialized kiosks.
    • Currently the leading publications are:-
    • Exclusively International:
    • International Residence 2 x 35,000 copies 176 pages €.1,495
    • Your property overseas(St. Pete) 10x 7,500 copies 88 pages €.1,450
    • Vedomisti Supplement (closed)
    • Homes Overseas (closed)
    • Domestic & International
    • Homes Collection 6x 31,000 copies 112 pages €.900
    • Digest of Russian and Foreign RE 10x 30,000 copies 88 pages €.3,500
    • Salon Nedvizhimosti 12x 30,000 copies 192 pages €.3,250
    • Vid namore 6x 10,000 copies 100 pages €.1,000
    • Nedviahimostbezgranic 10x 10,000 copies 30 pages €.1,000
    • - Rates are based on 1 full page display advertisement.
  • 12. Internet penetration and portals
    • Internet penetration in Russia continues to grow fast. At the end of 2010 there were 59,700,000 users, 42.8% of the population. The increase from 2009-2010 was in excess of 31%!
  • 13. The main Internet property portals in Russia.
    • Again there are many claims on the volume of visitors and the number of objects listed, but little transparency, as a result it is hard to define which is the largest/most effective.
    Est Offers Visitors/day Only Int. Cost Prian.ru 2006 15,000 10,000 INT 3 months €.220(30) 1-property.ru 2004 3,000 5,000 INT 3 months €.50 Zagrandom.ru 2004 2,000 4,800 Dom/INT 3 months €.75 HomesOverseas.ru 2011 10,000 1,800 INT 3 months €.10 Zarubezhnaya.ru 2008 12,000 No info Dom/INT 3 months €.150 Justreal.ru 2007 6,200 No info INT 3 months €.75 Realty.dmir.ru 2011 15,000 15,000 Dom/INT Free Bsn.ru 1999 ? 8,000 INT € 65 month JJC.ru 2010 2,000 1,000 INT € .80 per month Irr.ru 2005 2,000 2,000 INT € .10 month
  • 14. Exhibitions in Russia
    • Russia now has quite a comprehensive number of exhibitions. Moscow is most prevalent with a growing number of events now in St. Petersburg. Whilst they might exist no successful events are recorded in other cities.
    • Moscow
    • DomExpo
    • 2x 200 participants 16,000 visitorsNoV€.350 m2 Dom/INT Since 1999
    • Moscow International Property Show
    • 2x 202 participants 7,655 visitors VER €.450 m2 INT since 2003
    • Second Home
    • 2x 130 participants 14,000 visitors NoV €.300 m2 Dom/INT Since 2004
    • Property Worldwide
    • 2x 133 participants 3,000 visitors NoV€.350 m2 Dom/INT Since 2008
    • Moscow International Investment Show
    • 2x 182 participants 6,440 visitors VER €.450m2 INT Since 2007
    • InterHome
    • 2x ? 97 participants 10,000 visitors NoV €.??m2 INT Since 2007
    • Golf & Luxury Property Show
    • 1x 107 participants, 4,617 visitors VER €.450 m2 INT Since 2010
    • St. Petersburg
    • Yarmarkt Expo
    • 2x 100 participants 7,000 visitors NoV €.290 m2 Dom/Int Since 2006
    • St. Petersburg International Property Show
    • 2x 150 participants 7,000 visitors VER €.350 m2 INT Since 2008
    • ProEstate
    • 1x 1,200 participants(!) 2,500 visitors NoV €.280 m2 Dom/Int Since 2007
    • InfoReal
    • 1x 50 participants 6,000 visitors NoV €.256 m2 Dom/Int Since 2009
    • BSN Expo
    • 2x 120 participants 15,000 visitors(!)NoV €.250 m2 Int Since 2011
    • NoV = non verified
    • VER = Verified
  • 15. Once you have attracted a potential Russian client, what do they expect/require from you?
      • Answers to a LOT of questions
      • Efficient and professional advise
      • Availability of Russian speaking staff
      • The possibility of a Russian speaking lawyer
      • All prices on the table, no hidden extras
    • To successfully close sales to Russian clients, you must first gain their trust and respect!
  • 16. Specific recommendations for Developers or Agents looking to sell in Russia
    • If you are looking at the Russian market, you should consider a longer term view, Rome was also not built in a day!
    • Consider marketing actions to establish brand/name recognition prior to attending Property Exhibitions
    • Research and learn to compete with other countries popular on the Russian market
    • Re-evaluate the current situation, what are the USPs for your destination
    • Quality, price, lifestyle, investment potential…
  • 17. Upcoming Shows
    • 18-19 November 2011 MOSCOW INTERNATIONAL PROPERTY SHOW
      • www.internationalproperty.ru
    • 20-21 April 2012 MOSCOW GOLF & LUXURY PROPERTY SHOW
      • www.luxurypropertyshow.ru
    • 28-29 October 2011 ST. PETERSBURG INTERNATIONAL PROPERTY SHOW
      • www.spb.propertyshow.ru
  • 18.
    • 10-11 February 2012 BULGARIAN HOME EXHIBITION, MOSCOW
      • www.bgshow.ru
    • 9-10 March 2012 MOSCOW INTERNATIONAL INVESTMENT SHOW
      • www.investshow.ru
    • 16-17 марта 2012 Выставка Загородная Недвижимость DOMSHOW
      • www.domshow.ru
    Upcoming Shows
  • 19.
    • 1 February 2012 INTERNATIONAL RESIDENCE MAGAZINE
      • www.internationalresidence.ru
    • 19 March 2012 MOSCOW INTERNATIONAL MICE FORUM
      • www.MICEforum.ru
    • 20-21 April 2012 MOSCOW GOLF SHOW
      • www.moscowgolfshow.ru
    Upcoming Shows
  • 20. Thank you for your attention!
    • Kim Waddoup
    • CEO, aiGroup, Russia
  • 21. Contact Us
    • Russia, Moscow, 3rd Frunzenskaya, 5,
    • build. 1, office 1
    • Tel: +7 495 926 9695
    • E-Mail: moscow@ aigroup.ru
    • http://www.aigroup.ru/

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