Newly- built apartments in Moscow typically sell for between £500 and sq ft, compared to £800 - £1000 sq ft in London. Property values have increased by no less tha 300% in the last three years, and there is little sign of the market slowing. A shortage of good properties is ensuring that prices are maintained. Few Moscow apartments meet accepted Western standards, so many of new developments are usually sold off-plan. The demand is fuelled not only by the Russian nouveau riches, but by the international corporate sector as a great number of foreign banks and businesses set up in the Russian capital. This also, of course, is putting a premium on good office accomodation.

Buying Property in Russia

There's no restriction on foreigners buying real estate. The process of buying an apartment can be divided into the following stages: finding an apartment, negotiations and signing of the preliminary agreement; preparing the closure and research of the apartment history; closure and registration of the deal.

Most apartments are still purchased for cash. On the day of the closure, the cash is deposited in a safe deposit box at a bank with access allowed to the seller only upon presentation of the registered paperwork for the apartment in the name of the new owner. After depositing the cash, the parties sign and usually notarize the sale-purchase agreement. upon the signing, the sale-purchase agreement is submitted for the state registration, which takes from 7 to 14 days. When the state registration is completed, the new owner actually acquires the right of ownership to the property.

Under Russian legislation, the right of use and the right of ownership and disposal are separate, so it is necessary to be very careful when securing that no strangers or sellers have the right of use to your property. This is only one example of numerous legal issues involved in real estate transaction in Russia. It is very important to check the legal history of the apartment, as well as its privatization procedure. When buying an apartment, the use of a professional real estate agent to represent your interests is strongly recommended.