Transcript FIABCI 63 World Congress St. Petersburg

63 FFIABCI Congress
St. Petersburg,
12-16 May 2012
Russians, purchasing second
homes abroad: budgets,
motivation, preferences. Trends for
2012
Tatiana Rodionova – past president of FIABCI-Russia
Tatiana Rodionova – President for FIABCI-Russia
Residential Property market in Russia: Overview 2008-2009
Tatiana Rodionova, President of FIABCI-Russia
PRIAN.RU – Недвижимость за рубежом
 PRIAN.RU
– the leading Russian Website, devoted to Overseas properties, is
searching Russian customers market
since 2007
 The absolute figures can be different, as
compared to other sources, but the
tendencies and trends show the picture in
dynamic very well
63 World FIABCI Congress St. Petersburg
www.prian.ru
www.prian.eu
Questions:
What had happened with
budgets after crisis?
What motivates Russians to
buy properties abroad?
What kind of properties are
preferable?
What are the main popular
destinations?
FIABCI 63 World Congress St. Petersburg
How much are you ready to invest
in purchasing property abroad
40
35
30
25
20
2007
15
2012
10
5
0
less
up to 50 up to
up to
up to
up to 1
more
than 20
000
100 000 200 000 500 000 000 000 than 1
000
000 000
FIABCI 63 World Congress St. Petersburg
Prices in rubles
Prices in US dollars
7000
200000
180000
2008
2009(B)
2009(E)
15%
160000
6000
2008
2009(B)
2009(E)
23%
5000
140000
120000
22%
4000
28%
100000
3000
80000
24%
17%
60000
2000
40000
1000
20000
0
0
Moskow
St.Petersburg
Ekaterinburg
Moskow
St.Petersburg
Ekaterinburg
Residential Property market in Russia: Overview 2008-2009
Prices in rubles
April 2008
70000
60000
Prices in US dollars
+1%
Febr. 2009
Sept. 2009
3000
2500
11%
50000
2000
April 2008
Febr. 2009
Sept. 2009
35%
30%
40000
1500
30000
1000
20000
500
10000
0
Habarovsk
Vladivostok
0
Habarovsk
Vladivostok
Residential Property market in Russia: Overview 2008-2009
You are looking for the opportunity to
buy property abroad with the purpose
2009
Keeping
(storage) of
money
12%
Profitable
investment
14%
Constant
residing
(Relocation
)
37%
Increase of
prestige
2%
Other
3%
Seasonal
residing
(Second
home)
32%
FIABCI 63 World Congress St. Petersburg
You are looking for the opportunity to
buy property abroad with the purpose
9%
5%
14%
48%
24%
To relocate permanently (to get residence status) in the nearest time or in future
To use your second home for the season vacation
To get preferences for visa support
To invest for protecting money from inflation
To work or to study abroad
FIABCI 63 World Congress St. Petersburg
5%
9%
14%
2009
48%
Keeping
(storage) of
money
12%
Increase of
prestige
2%
Profitable
investment
14%
24%
To relocate permanently (to get residence status) in the nearest time or in future
To use your second home for the season vacation
To get preferences for visa support
To invest for protecting money from inflation
To work or to study abroad
Constant
residing
(Relocation
)
37%
FIABCI 63 World Congress St. Petersburg
Other
3%
Seasonal
residing
(Second
home)
32%
5%
9%
14%
2007-2008
Increase of
prestige
5%
48%
Other
4%
Keeping (storage)
of money
7%
Seasonal residing
(Second home)
21%
24%
To relocate permanently (to get residence status) in the nearest time or in future
Profitable
investment
15%
To use your second home for the season vacation
To get preferences for visa support
To invest for protecting money from inflation
To work or to study abroad
FIABCI 63 World Congress St. Petersburg
Constant residing
(Relocation)
48%
Significant factors for Russian buyers (range)
Easy transportation from Russia (availability)
Proximity to the sea (lake), resort area
Economical and political stability in country
Comparably low price per m2
Well-developed Infrastructure of the area
Easy application of visa for the property owners
Interior, furniture, equipment, swimming- pool,
Possibility to get mortgage, while purchasing
Profitability of investment: Rental yield
Tatiana Rodionova, President of FIABCI-Russia
Evolution of demand in % (TOP-TEN countries)during the
period 08/08 - 08/09 according to PRIAN.RU visitors
30.08.2008
25
30.11.2008
30.01.2009
20
30.03.2009
30.05.2009
30.06.2009
15
%
30.07.2009
10
5
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0
Popularity of properties for
Russian potential customers in
April, 2012 (top 15)
25 23,01
20
15
12,33
11,38
10
5,685,14
5
4,48 3,73 3,5
3,21 3,192,582,51 2,38
1,92 1,17
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0
FIABCI 63 World Congress St. Petersburg
How do Russians prefer to
purchase?
What is the specific of
Russian customers?
How to attract them?
FIABCI 63 World Congress St. Petersburg
Who are you going to ask for assistance
in purchasing property abroad
18%
44%
22%
16%
Directly the foreign Real Estate agent (agency)
Real Estate agency, located in Russia
Directly the Developer of the project
Do not need any assistance
FIABCI 63 World Congress St. Petersburg
Investment for today:
Long-term investment instead of
short-term
Protection of money instead of high
profit
Importance of liquidity factor rises
Availability of mortgages is more
important, as like as:
Economic stability & legislative
protection of investment
FIABCI 63 World Congress St. Petersburg
But there is some difference between
Premium & Economy segment buyer.
For Economy segment buyer is also
important:
Comparably low price of the offer
inside region
Low costs for exploitation & taxes
Cheap life in the country and
connection with Russia
Visa preferences for senior ages
FIABCI 63 World Congress St. Petersburg
Specific of the Russian buyers of second
homes:
Polarity of opportunities - 2 different
groups, looking for:
-economy segment (from 30 to 150
thousands Euro)
Bulgaria, Spain, Montenegro, Turkey,
Czech Republic, Baltic countries, etc
- premium segment (from 1 to 5 million
Euro)
France, Italy, Switzerland, USA
Tatiana Rodionova – FIABCI-Russia Past President
All are interested in:
Friendly atmosphere & political stability
Easy visa regime and preferences to the
home-owners
All have traditional inert choice of preferable
places
(it is hard to promote new regions of the
country)
The price is to be discussible (negotiable)
Tatiana Rodionova – FIABCI-Russia President
But there is some difference between
Premium & Economy segment buyer.
For Economy segment buyer is also
important:
Comparably low price of the offer inside
region
Low costs for exploitation & taxes
Cheap life in the country and connection
with Russia
Visa preferences for senior ages
Tatiana Rodionova – FIABCI-Russia President
For Premium segment buyer is
important:
Only very prestigious places (plus “first
line”)
Some of them do not want publicity and
Russians around,
but majority prefer places with Russian &
International “high society”
Unique properties with own history or
design (highest level)
Quality service and all the amenities
The ability to conduct business & obtain
the residence permit
Tatiana Rodionova – FIABCI-Russia President
Investment for today:
Long-term investment instead of short-term
Protection of money instead of high profit
Importance of liquidity factor rises
Availability of mortgages is more important,
as like as:
Economic stability & legislative protection of
investment
So, according to these factors most popular
countries are:
Germany, Britain, France, USA, etc.
Budget: 150-300.000 Euros
Tatiana Rodionova – FIABCI-Russia President
Important factors:
Political and economic stability of the
country;
Level of legislative protection of
investors;
Availability of projects with a
guaranteed rental income;
The liquidity of real estate;
The availability of mortgages for
Russians.
Tatiana Rodionova – FIABCI-Russia President
Financing:
before the crisis, almost 90% of Russian
buyers
have invested their own funds (cash), and
only 10% used bank
financing.
Now the situation has changed: for
example, to buy property in UK 30-40%
of Russians use mortgage, property in
in Spain - over 65%, in France –approx.
50%,
Tatiana Rodionova – FIABI-Russia President
Migration purposes:
The possibility of obtaining a
residence permit or visa
Facilitation IS VERY IMPORTANT for
today for all
categories of Russian buyers;
But let us hope, that political stability
and growing prosperity of Russia in
future will protect the most popular
countries from 125 millions of
Russians immigrants!
Tatiana Rodionova – FIABI-Russia President
All of them prefer to buy second homes:
in the countries with good climate, better on the
sea coast
in places with highly developed infrastructure
(no any offers in “beautiful peaceful village”!)
Good accessibility (better direct transportation
from Russia)
Already constructed & equipped homes or
apartments
(no land plots, projects under first stage of
construction,
or ones, which need serious reconstruction)
Tatiana Rodionova – FIABCI-Russia President
March, 1992: free market of Real Estate as a private
property appeared in Russia,
when the Privatization Law has been accepted.
According to that law every Russian tenant got the right to
privatize his rented from the State residential real estate –
free of charge.
The right to privatize real estate may be used by a Russian
citizen of legal age (after 18) only once in a lifetime – and
only till 03.2010
1992 – hyperinflation and economic crisis made hard
currency extremely expensive and purchasing capacity
extremely low and so since people got their real estate
free of charge – the property appeared to be extremely
unvalued.
The price of 1 square meter of residential real estate in the
beginning of 1992 found to be only $100-200 in main cities
of Russia
Residential Property market in Russia: Overview 2008-2009
Tatiana Rodionova, President of FIABCI-Russia
Middle price of 1 sq.m during the period
1992-2008 (in Saint-Petersburg) in US $
$4 500,00
$4 000,00
$3 500,00
$3 000,00
$2 500,00
Ряд1
$2 000,00
$1 500,00
$1 000,00
$500,00
$0,00
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де
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24
16
25
24
25
24
23
29
27
26
25
24
Tatiana Rodionova, Past President of FIABCI-Russia
$7 000,00
Middle prices in regions
$6 000,00
$5 000,00
Novosibirsk
$4 000,00
Krasnoyarsk
Rostov/Don
$3 000,00
Ekaterinburg
$2 000,00
St.Petersburg
Moskow
$1 000,00
$0,00
2004
2005
2006
2007
2008
2009
Thank you for your attention, welcome with
any questions!
Tatiana Rodionova
[email protected]
Skype: planet_property
+7 921 992 92 88
FIABCI 63 World Congress St. Petersburg
FIABCI 63 World Congress St. Petersburg