How does Russian real estate pricing and market terminology work
Russian real estate pricing is influenced by factors such as wages, construction costs, unemployment, migration, currency exchange rates, and average apartment size. Prices differ significantly by region, with cities like Moscow and Saint Petersburg having notably higher property values due to greater demand and economic stability. The market includes both a primary housing market (newly built properties sold directly by developers) and a secondary housing market (resales of existing properties), with the primary market showing signs of rapid price growth and potential bubble risks, while the secondary market remains more stable due to high mortgage rates.
In terms of terminology, Russian real estate uses specific terms for various roles and processes such as “агент по недвижимости” (real estate agent), “договор о внесении аванса” (earnest money contract), and “бремя недвижимости” (real estate burden). The appraisal process typically involves a physical inspection, market analysis, and valuation using comparative, income, or cost-based methods to determine property value.
Mortgage conditions in Russia have been challenging due to high interest rates (around 21-30%), affecting affordability and loan durations. Proxy transactions (power of attorney) constitute a significant share of secondary market sales, sometimes affecting price and perceived risk.
Overall, the Russian real estate market is complex with localized price drivers and distinct terminology in use for transactions, appraisals, and financing. This complexity is heightened by economic factors and regulatory conditions specific to Russia’s regional and national market dynamics. 1, 2, 3, 4, 5, 6, 7