Europe | Russia
Russia
A new generation of super-rich
individuals is fuelling demand for
the high-end of the market
Despite falling national population numbers, the
number of people migrating to Russia’s major cities is
increasing. Moscow has reportedly grown by
17 per cent over the last 16 years. Higher salaries in
these urban locations are driving inward migration,
subsequently putting strain on cities’ infrastructure;
which ultimately raises the demand for housing.
Housing demand in urban areas
Russia’s strong demand for housing is generated not
only by rising domestic wealth, but also by foreign
expatriates relocating to Russia’s principal cities as
multi-national companies seek a corporate presence.
Consequently, a number of bespoke expatriate
residential communities have emerged in response to
this demand, often in suburban locations.
With limited supply of and strong demand for high-
end properties in city-centre locations, residential prices
are being driven up; in the past four years, prices for
luxury residential units in Moscow’s centre have tripled.
Moscow has been rated since 2006 as the most
expensive city in the world to live in. This is to a
significant extent due to the constant increase in
property sales and rental prices, thereby arguably the last five years. Furthermore, Russia’s population
In the past four years,
making Moscow a sound investment in real estate for of billionaires is the fastest growing in the world,
prices of luxury
residential apartments
those that can afford it. increasing by 64 per cent in the last year alone.
in downtown Moscow
This rapid growth in the billionaire population is have tripled.
Russian billionaires reflecting the expanding economy. And these individuals
It is Russia’s rapidly expanding number of super-rich are fuelling demand not only for high-end residential
that are supporting these price rises. The number of property in Russia itself, but equally, for luxury
HNWIs has increased by a remarkable 70 per cent in properties the world over. n
Making its mark
Based in Moscow, Intermark residential real estate buy an apartment or house for the further resale or rent/
has partnered with Savills to form IntermarkSavills. It lease, and provide an analysis of future expectations
possesses 15 year’s experience of the Russian market, of the purchased real estate price increases, and rental
and is a leading local residential property agent. The property rates. IntermarkSavills provides consulting
synergies between these two well established agencies, services to investors, developers, tenants and buyers.
a combination of international experience with local With a wealth of experience in relocating business
knowledge, provides IntermarkSavills with an unrivalled people and moving their homes and families to Moscow
range of property services from rental agency to and other Russian cities for the world’s biggest
international investment consultancy. corporations, IntermarkSavills prides itself in offering
The Sales department of IntermarkSavills offers the best and most comprehensive range of relocation
elite real estate in the prestigious downtown areas of services in Russia.
Moscow. The company offers high-end properties and
provides all necessary legal work for the purchase.
Contact:
IntermarkSavills helps its clients invest in Russia
Alexander Shatalov Daniel von Barloewen
with the goal of offering stable profits in attractive
+7 495 775 22 40 +44 (0) 20 7016 3740
investments. Its consultants assist clients wanting to a.shatalov@intermarksavills.ru dvonbarloewen@savills.com
22 savills global residential review
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