The foreign real estate market was discussed again in St. Petersburg

The foreign real estate market was discussed again in St. Petersburg

The exhibition of international real estate "St. Petersburg International Property Show" took place on 25-26 October 2013 in St. Petersburg. It was attended by more than 200 companies and several thousand visitors.

The foreign real estate market was discussed again in St. Petersburg | Photo 1 | ee24

There were about 120 exhibition stands of Russian and foreign builders and developers, real estate agencies, magazines and news sites, experts on legal transactions. European real estate portal ee24.com was among participants.

The foreign real estate market was discussed again in St. Petersburg | Photo 2 | ee24

The largest number of participants specialized in real estate in Spain, Bulgaria and the Czech Republic. In addition, many stands were devoted to projects in Turkey, Greece and Cyprus. Apparently, it was what most of visitors were interested in. People often asked about the features of a residence permit in Bulgaria, Cyprus, the Baltic States, as well as about prices for real estate on the shores of the Iberian Peninsula.

The foreign real estate market was discussed again in St. Petersburg | Photo 3 | ee24

Seminars, which were a part of the exhibition, got popularity. There were no free seats during the report on the purchase and renting of property in Spain. Seminar on the procedure of real estate registration in Bulgaria attracted the attention of Russian pensioners, who decided to move to sunny Black Sea country.

The foreign real estate market was discussed again in St. Petersburg | Photo 4 | ee24

Four of thirteen seminars were dedicated to Turkish new real estate, rental market and principles of the mortgage for foreigners. The excitement around the Turkish Republic is quite understandable: this country grants a residence permit for buyers of any property regardless of its price. In one article by ee24.com Turkey was among the most promising countries for the purchase of real estate in exchange for a residence permit.

The foreign real estate market was discussed again in St. Petersburg | Photo 5 | ee24

We managed to talk to some exhibitors, learn about their achievements over the past year, and find out what issues market participants are concerned about. It was found out that the similarities are more common than the differences.

Russian buyers are returning to the European real estate markets

According to Aleksander Mazko, member of the board of the Estonian developer NG Eesti, there were 25% of Russians among his clients till 2008. Then there was a sharp decline associated with the crisis, but indirectly - from the political tensions between the two countries. For example, the company now submits a residential development "Black Swan" in a prestigious area near the Kadriorg Park. Only 10% of 32 apartments were bought by Russians. Among other clients are Estonians themselves, as well as the Finns and Swedes. However, Mr Mazko notes that the demand from Russians is beginning to recover.

The foreign real estate market was discussed again in St. Petersburg | Photo 6 | ee24

The same "curve" of demand has the development company Noyanlar from Northern Cyprus. Almost immediately after emerging to the Russian market (it happened in 2007), the crisis began, and company felt the lack of interest from Russians. However, according to the head of sales Erman Esentuna, there was an increase in the last year, and since then the demand remains stable.

The foreign real estate market was discussed again in St. Petersburg | Photo 7 | ee24

Real estate professionals are concerned about changes in the laws of different countries regarding the provision of a residence permit in exchange for the investment

Maria Konstantinova, a specialist of Ally Estate, hopes that the Latvian law on quotas for residence permits and an increase of the minimum value of the investment will not be accepted. Let us recall: residence permit in Latvia is granted for buyers of property priced more than €142,000 in Riga and more than €71,000 in other cities. Now, however, people's representatives are working on a law which will make the threshold of €142,000 a nationwide. Ms Konstantinova said that a uniform nationwide minimum value will forward foreigners to purchase in Riga and Jurmala only. It will undermine real estate markets in other Latvian cities.

The foreign real estate market was discussed again in St. Petersburg | Photo 8 | ee24

Erman Esentuna believes that visa-free entry and the simplicity of obtaining a residence permit in exchange for the purchase of any real estate attract Russians to North Cyprus. Housing prices here are several times lower than in the Greek part of the island, while recreational opportunities are similar. Furthermore, recent events have proved that the economy is more stable in the North than in the South.

The foreign real estate market was discussed again in St. Petersburg | Photo 9 | ee24

On the other hand, most of Russian buyers in Spain are generally interested in purchasing for renting out hereafter. Portal ee24.com reported earlier that Spanish "golden visa" is granted to buyers of housing priced at more than €500,000. This ammount is much higher than many popular offers on the coast. In addition, the holders of the Spanish residence permit have to pay taxes on any income and any property, wherever it may be, to Spanish budget.

The foreign real estate market was discussed again in St. Petersburg | Photo 10 | ee24

It's great that exhibitions such as St. Petersburg International Property Show, not only attract potential buyers, but they are also excellent places to meet professionals in the field of real estate, discuss the latest trends, news and forecasts of market development.

Text: Alexander Fetyukov, ee24.com