The market must get back to the results of 2008

Stanislav Zingel, president of Gordon Rock, discusses the situation in the sphere of real estate

The program of the VI Moscow International Investment Show successfully held on March 12-13, 2010 at "Tishinka" in Moscow wasn't traditionally exhausted with activity at the stands. Visitors predictably took interest, above all, in those destinations that seem most promising to them. However here at the show it was possible to get information on the state of the real estate market at large and what should be expected during the next year, given the participation of experts in this area. The analytics offered by Gordon Rock always rouses great interest and so we asked the company's president Stanislav Zingel to give a short summary of the market situation.

— The real estate market is rather volatile; much can change within 2-3 months so our question has the right to existence: what has changed since the autumn shows where we earlier met?
— The general impression is that the market has perked up since November at all destinations. Israel, USA, the Costa Bravo coast, Czech Republic and Germany have been in highest demand and now represent the most interesting markets. Australia which showed a 12% growth last year and attracted investors deserves a special mention.

— But this is a very remote land…
— It does not attract holiday-makers who can certainly find a nearer destination anyway. No, Australia is a good place for those who seek profitable investments.

— Maybe you'd like to mention some other new market trends?
— Last year the leaseback scheme was often used: it guarantees a certain yield. Now a purchased object is not only looked upon as a residence; its investment appeal is also taken into consideration. There are a number of investment properties on the market that also guarantee high living standards.

— Are they interesting to Russians?
— Yes, they are - people of Russia can now find leaseback investment projects on the 150% interest in Turkey priced from 40,000 euro, projects with warranted yields in USA, Israel, Spain and London. Now our company lays emphasis on investment properties; this is often more interesting for Russian buyers than a mere purchase of square meters.

— What other destinations deserve a mention from property acquisition perspectives?
— Cyprus is a rewarding destination. This market has stopped falling and begun recovering. The same can be said about Greece. This country is under EC's thumb, so to say, but at the same time it set its face towards the Russian buyer, having simplified the acquisition procedure, which also allowed more deals. America also gladdens with its property prices.

— Why so?
— They've reached a certain psychological bottom. As a result buyers have returned to the market. Incidentally, Russian buyers rank high among overseas investors in general, though USA has always been noted for high inland demand and has never depended on foreigners to any large extent. The Israeli market is also very dynamic. Very many Russians and Jews have started buying real estate there for understandable reasons, including a four-hour flight, visa-free mode, three seas and rewarding communication environment.

— Is it possible to draw any general conclusion?
— I'd forecast that the market will return to the results of 2008 by the year's end.

— If you don't mind, please, say a few words about this show…
— It's not the first year we participate in the shows organized by aiGroup; we communicate with Kim on a regular basis and know both the terms and prospects very well. I'd put it thus: this is the only show that works for our agency. It's a pity that some exhibitions overlap in time and buyers are torn apart between them. I'd also point to one more trend revealed at this and other shows: the exposure time has increased. People need more time to make a decision. We see those who attended the autumn show, then visited the Moscow International Investment Show held in spring but have not yet arrived at any decision. This should be borne in mind… On the whole, all shows conducted by aigroup have always paid off and this is excellent.

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Event reports 1-2 October 2010:
• The 7th Moscow International Investment Show, - annonce 1.
• The 7th Moscow International Investment Show, - annonce 2.

Event reports 12-13 March 2010:
• The VI Moscow International Investment Show.
• "It's spring and sunshine outside and the weather is getting better…" - aiGroup's president Kim Waddoup reviews the results of the VI Moscow International Investment Show.
• "People appear optimistic" - the participants of the Moscow International Investment Show shared their impressions.

Event reports 2-3 October 2009:
• Russian buyers show resilience to worldwide trends.

Event reports 13-14 March 2009:
• No Time to Think of the Crisis. The investment show was marked by business activity.
• Show Turns Out Well. The International Investment Show was held in Moscow.

Event reports 3-4 October 2008:
• "There are islands of stability even in Europe" - leading expert of IPC Russia, Olga Wolf, gives her peer review.