Russia Info
Joined: 20 Apr 2007
Posts: 17
Home Country: russia
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 Posted: Tue May 29, 2007 7:46 am Post subject: HOUSING IN RUSSIA / RUSSIA HOUSING GUIDE |
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HOUSING IN RUSSIA
GENERAL
Expatriate areas
Popular areas for the expatriate community are Kutuzovsky Prospekt and Leninsky Prospekt West and South West of the Garden Ring and Tverskaya, Mayakovskaya and Arbatskaya in the heart of Moscow.
Housing
The availability of suitable housing can be tight due to the influx of expatriates. Renovated apartments are available in varying sizes in unrenovated, semi-renovated, and new residential buildings. In Moscow, houses are limited to several exclusive townhouse complexes on the outskirts of the city.
Cost of housing
The cost of apartments and houses varies from area to area and the size of the house or apartment you'll pay anything from US$600 - US$10,000 and higher. The local currency is Russian Ruble (RUR).
RENTING A PROPERTY
Nearly all the expatriates living and working in Russia are on temporary contracts and therefore rent their residential property.
There is an abundance of properties available to rent in Russia, and many property agents, some with websites on which you can view available apartments and houses. Agents typically charge at least a month's rent as the fee for securing a property through them. It is best to have an English-speaking agent recommended to you as unscrupulous practices are not uncommon. Be aware that agents often pose as private sellers in classified advertisements, and wary of agents who offer to sell you a list of private landlord phone numbers.
Many expatriates live in apartments or townhouses in gated or guarded compounds or apartment buildings, which range from 1 to 5 bedrooms. Rooms are typically quite small, but the lower level apartments often have access to a shared garden.
It is also possible to rent houses and apartments in the centre and on the outskirts of the city. Some rental properties are in very nice historical buildings, or are Western-style homes formerly used as summer homes or large houses with gardens in 'dacha' or country house communities outside the city.
The south-west, west, and part of the north-west areas of Moscow are the most prestigious (near the orange and red Metro line), where the highest quality rental accommodation can be found. Given the size of the city, it is quite usual to have to commute at least an hour to work wherever you choose to live.
The cheapest areas of the city are to the south-east and east. A "Russian renovated apartment" in these areas will cost considerably less but is likely to be quite drab and old-fashioned, and may be in a poor state of repair. However, for those on a very tight budget it is possible to rent Russian-style apartments in these areas for around US$200 per month or less. Generally, you can expect to pay at least US$800 per month for a reasonable standard of accommodation in Moscow.
In St. Petersburg and other cities it is preferable to rent accommodation in or near the city centre, as the suburbs do not offer much accommodation of a standard acceptable to western tastes.
The minimum rental period is normally six months, and you will often be expected to pay your rent in cash. It is important to ensure that the rental contract is in Russian and English, otherwise it will not be legally enforceable. You should also check that there are legal documents confirming that the landlord is the legal owner - if you use a property agency they should do this on your behalf.
BUYING A PROPERTY
Although few expatriates buy residential homes in Russia, there are no restrictions on the purchase of property by foreigners. Property in Russia currently represents a good investment as house prices are rising rapidly and there are currently many properties for sale. Prices in Moscow trebled between 2002 and 2005, although the rate of increase has recently slowed a little.
In Moscow prices for the types of apartments and houses bought by foreigners range from around US$150,000 to US$500,000. Properties can be rented out for a return of around 9-11%, plus capital growth. The mortgage market is only just opening up, and is expected to boost house prices even further.
Much cheaper properties can be bought outside Moscow, including St. Petersburg. It is possible to buy a house in a country village for little more than US$1,000.
In Russia property transaction costs such as registration of the contract are usually covered by the buyer, but these rarely exceed US$5,000. In addition, property agents normally charge the buyer 2-4% of the purchase price. Non-residents are required to pay a tax of 30% of the sale price on selling the property. |
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