Russia Investment: Economy
Top of property investment in Russia considerations is the country's economy. Russia is a major economic power and together with its fellow ‘BRIC' countries (Brazil, India and China) is expected to become the world's economic powerhouse by 2050. GDP growth in 2007 was 8.1% with 7.4% expected for 2008 and experts predict annual increases of 6% up to 2012.
Russia is the EU's 3rd largest trading partner and foreign direct investment reached record levels in 2007. Recent reforms in several key areas such as banking, finance and taxation, have led to a more open investment market and investment in Russia real estate has also benefited. Russia's strong economy and expanding open market increase potential for investment in Russia property.
Russia Investment: Tourism Potential
In addition to a strong economy, Russia also has a booming tourist sector. In 2007, Russia received 23 million visitors and the government tourist strategy 2008 to 2015 aims to boost these numbers to 35 million. Investment in tourism is set to double the number of hotels in Russia by 2015. Growth in tourism is expected to average nearly 7% a year for the next decade. Increases in tourism are an important factor when considering investment in Russia property.
Russia Investment: Property Market
The Russia property market is currently one of the strongest in Europe. The Knight Frank global ranking for Q2 2008 places Russia property in 3rd place for capital appreciation and reports that real estate in Russia saw a year-on-year price increase of 26% from Q2 2007 to Q3 2008. Moscow properties have the highest prices - off-plan property in Moscow is currently among the most expensive in the world - and properties in St Petersburg have doubled in price in the last 2 years. High capital gains and rental yields of over 5% a year make Russia property investment well worth consideration.
