3 Unusual Russia Real Estate Investment Ideas
Is it possible for foreigners to own real estate in Russia? The answer is YES!
There is a rapidly growing interest in real estate investment in Russia from both expats in Russia and foreign investors alike. I thought it would be interesting to share a few of the investment opportunities in Russia that have crossed my desk in recent weeks:
The Fiddler on the Roof
If you’re “all in”, you can always learn how to play the balalaika, buy a cow, move to the village, and build your very own banya. I guess this is an investment mainly in the sense that you would be investing in something like peace and quiet… or unforgettable life experience.
You might be surprised to learn how many foreigners have taken up long-term residence in remote Russia villages!
Here’s a brick house for sale in a village in the Rostov region.
A Real Estate Investment/Medical Business
Not only is Russian law very open to the foreign purchase of real estate, it is also very open to foreign ownership of local businesses.
There are a large number of real estate/business offers ranging from medical clinics to factories to stores or even small apartment buildings with long-term renters. The latter has become a popular option among foreign university students, presumably financed by relatives from back home.
This is perhaps my personal favorite and is hands-down the most popular both among expat and foreign investors in Russia.
You can invest in an efficiency apartment in a hotel facility and either live there, rent it out yourself, or sign a contract with the hotel management in which they operate your apartment and you split the profits with them, often an 80/20 split. There are many such options in Moscow and St. Petersburg, often located in high demand areas of the city.
For example, the Tverskaya Residence complex in downtown Moscow offers both penthouses (at $5 million USD and up) and also smaller efficiency apartments (starting at around $267,000) in the hotel portion of the building. It offers a guaranteed annual return on investment of 10%, creating a true passive income with your real estate investment.
It’s the hotel’s responsibility to attract customers, service the room during their stay, clean, fix any damages… and transfer money to your bank account.
These 3 Russian Real Estate Investment options are only the tip of the iceberg. It has been encouraging to see this uptick of serious long-term interest from foreigners from all around the world.
It’s cool to be a part of options with such a strong upside, help provide management options for the foreigner if they don’t plan to live in Russia, and also steer them away from dubious investment situations.
Whether you are looking for an office in Moskva-City or have always dreamed of living in a Russian village, the doors are open, and you can start making steps towards a more serious long-term relationship with Russia today. And perhaps nothing shows how vast and diverse Russia is than all of its real estate investment opportunities.
At Expat Flat, we are thrilled to be a part of making real estate investment in Russia open to the world. Don’t hesitate to contact us today so that we can discuss what type of investment in Russia could be the best fit for you and your financial goals.
Have a question for Andy about investing in real estate in Russia? Contact Andy with this form, or use the chatbox on the bottom of this page!
Expat Flat founder Andy Frecka is a native of Ohio in the USA and together with his wife and four children has made Russia his home for the past 20 years. Andy’s mission is to offer you a Western-style and English language real estate service at local Russian rates. Andy looks forward to discussing with you how you can reach your real estate investment goals in Russia!