Russia Investment: Economy
The Russia land and property buyer's first concern is Russia's recent economic performance. Russia is currently enjoying its longest period of growth with GDP annual growth averaging around 7% since 1998. Russia's continued growth has led to an unprecedented opening up of the Russian economic market and this includes Russia real estate. Potential for investment in Russia property is currently better than ever.
Russia also boasts increasing foreign investment throughout the country and Russia's foreign direct investment almost doubled between 2005 and 2007. This tendency looks set to continue - according to World Press, a massive 90% of foreign businesses in Russia plan to expand and increase their investment over the next 3 years. This will create numerous jobs for ex-pat workers and locals, leading to a huge increase in demand for Russia properties, therefore indicating that Russia property investment is a compelling choice.
Russia Investment: Tourist Industry
Russia is fast becoming a favourite tourist spot. Ranked as tenth in the world's top tourist destinations, Russia tourism potential is set to increase annually. In the Russian Riviera (home to Sochi), tourism is currently rising by 20% a year and the Sochi 2014 Winter Olympics will give a huge boost to visitor figures. Russia has recently lifted travelling restrictions in central parts of the country, facilitating tourist access and increasing potential for Russia property investment.
Russia Investment: Property Market Potential
The Russia real estate market is at present underdeveloped, but has recently seen some impressive gains. These have been particularly high in Moscow new builds (price increases were over 90% in 2006) with Moscow construction experiencing massive development, particularly in the suburbs where Moscow properties located in ‘cottage settlements' are popular. The St Petersburg property market is also doing spectacularly well with St Petersburg off-plan apartments seeing price rises of over 115% a year. The Russian Riviera in the Krasnodar region is currently up-and-coming with Sochi off-plan development achieving gains in the region of 35% to 40% in 2006. Sochi property is forecast to achieve even better results on the back of the Olympics and is a prime location for property investment in Russia.
