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Expats and Locals: See Inside
Who's Renting
for the hottest
Where?
real estate in and
Russians in the
French Alps
around Moscow
p.4
N° 64, December 2009
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A D V E R T I S I N G
S U P P L E M E N T
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Luxury Long−term Lettings
MAYFAIR PROPERTIES
by Alexander Teddy
Rental prices for top−end luxury properties outside Moscow have remained mostly static in 2009, realtors said, capped at about $70,000. In 2007, some extreme rates were as high as $100,000 per month.
eople want to get out
to the fresh air and the
countryside surroundings. It’s about finding
the healthiest, yet most
comfortable living for
those who can afford it — particularly for
their children,” said Marina Markarova,
managing partner at Mayfair Properties,
“P
a luxury realty specialist based in Moscow.
A popular and growing trend among
Muscovites with sufficient disposable
income is to rent out a sizeable property
just outside the boundaries of the capital
for several months, if not longer — often
during the winter months. A number
of firms in and around Moscow offer
agency services to prospective tenants to
help with the locating and letting of high
quality and, at times, extravagant houses
outside the city.
It goes without saying that in Russia,
people like to have homes to retreat to
beyond the confines of the metropolis.
The dacha tradition is one of the very
cornerstones of Russian culture even today,
as thousands flock out of Moscow and
other large cities every weekend, especially
during the summer heat. But this newer
trend, albeit something basically for the
wealthy, is more an imitation of the aristocratic mansion retreat than the classic
rustic Russian experience. What is more,
during winter it sees people renting for
continued on page 2
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MAYFAIR PROPERTIES
The furthest that most tenants of luxury out−of−town houses generally want to be is 15−20 kilometers from Moscow's ring road. The Rublyovskoye Shosse is a very popular choice for Moscow's rich and powerful.
continued from page 1
longer periods than just the few days over
the New Year or Orthodox Christmas.
Clean Living
he ‘ecological factor’ is very important
for a lot of tenants too: many richer
Russian families like to reach the cleaner
air and more natural surroundings of outof-town locations, while remaining within
a stone’s throw of the city. “Plenty of
people don’t look any further than 15 kilometers from the MKAD [Moscow’s ring
road],” explained Yekaterina Batynkova,
tain of the popular highways, such as
the Rublyovskoye Shosse, running out of
Moscow to the west, prevent people from
wandering into neighboring woodland
or hunting enthusiasts from taking off in
search of local prey.
A Price Not Too Far
uxury letting firms around Moscow variously described how these wealthy tenants would take on a lease for elite-class
houses for at least several months and sometimes up to or beyond a year. “The longer
they rent, the better the deal is in terms of
value for money,” Markarova remarked. “In
L
essence, anything under three months is
unusual — people generally go for between
that and a year. Three days, for example,
would be very expensive,” she said. Of
course, prices depend not just on the length
of occupancy, but also heavily on the individual specifications: many go for a pool or
tennis court, while the distance from the
MKAD is an obvious factor.
Rental prices leapt during 2008 by
20 to 30 percent, Markarova said, while
2009 has not yet seen a rise in prices on
top-end out-of-town lettings; indeed the
first half of the year saw a drop in the cost
of renting such properties, as most areas
of the real estate market were curbed by
MAYFAIR PROPERTIES
MAYFAIR PROPERTIES
T
managing director of specialist real estate
agency Usadba, part of the MIEL group.
“But they want to be able to walk in the
fresh air and let their children enjoy unpolluted playgrounds.”
Yet while this escape from the city
rush and its accompanying grime offers
potentially cleaner and greener surroundings, it can come at the expense of some
freedoms. Many of the houses are within settlements and nestled close to one
another — usually 400 to 900 squaremeter houses on an average of between
1,500 and 3,000 square meters’ worth
of land, Mayfair Properties estimated.
Meanwhile, security regulations along cer-
October 2009 saw a sudden leap in supply of out−of−town rental property, MIEL reported in November. But demand is expected to rise by the New Year and spike in spring, said Slavyansky Dvor's Oksana Pisarenko.
2
The Moscow Times Real Estate Catalog
December 2009
FOR REC
a lack of spending in the economy as a
whole and a drop in consumer confidence.
Batynkova confirmed this, explaining how
prices across the entire Moscow real estate
rental market had fallen by 30 to 40 percent (although not always advertised as
having dropped) and admitted that houses
such as those leased by Usadba were “an
additional feature” in most people’s lives.
“People try to save money,” she said, referring to the effect of the crisis on Usadba’s
winter rentals. “Now, prices will rise again,
although many people will still be cautious,” she predicted.
Prices falling on out-of-town rentals
may well have made a difference to demand
in the sector, said Markarova. When compared with sales in the same sphere, there
has been less of a drop-off in transactions.
“People wanted to stop and wait in terms
of either selling or making a purchase,” she
said. “Lettings, while also down, did not
fall as hard as their sales equivalents.”
In addition, there is a side to the
out-of-town rental market that is not
detectable to the public observer. A number of closed transactions on properties
take place, whereby the house in question
is not advertised. A lessor will discreetly
contact the agent, who in turn will contact
potential tenants on the quiet. “We have
‘closed’ properties — they are available
only for our special clients, although the
financial benefits as usual are bigger from
the sales department,” Markarova said.
“But it’s not necessarily the most expen-
Security is a priority for many tenants in luxury houses near the capital. Often they seek accommodation for security personnel as well as for their family.
The further from the MKAD one chooses to
live, the less likely security issues will hamper
family or outdoor living.
within close, and fashionable, distance of
Moscow, Markarova said.
Expats too often look for rentable,
luxury out-of-town housing, sometimes
for the duration of a work-term or secondment in the city. This means that
they, as Russians are increasingly doing,
look not just for leisure attractions within
the immediate vicinity of their house,
but often also for schooling facilities for
their children, Batynkova relayed. “Expats’
settlements are generally more organized,
with the likes of shuttle services or language services on site too.”
Yekaterina Batynkova
sive properties that get let out in private,”
Batynkova remarked, “so you can’t say
that there is a separate, exclusively ‘closed’
market — rather individual clients with
particular preferences.”
Elite Behavior
specially along the Rublyovskoye
Shosse, certain residents have particular
requirements: it is where a number of ministers and the Russian president, Dmitry
Medvedev, have houses. This often means
that the road is closed off to public traffic,
to allow the fast passage of governmental
cars to and from their destinations. What
is more, the day-to-day living for anyone
less influential can also be quite restricted,
Batynkova said, although she also made it
clear that the further from the MKAD one
chose to live, the less likely security issues
would hamper family or outdoor living. In
winter, many families choose to make use
of local sledging or horse riding facilities
available around some settlements. There
are also ice rinks and fitness centers in
some luxury compounds.
In one particularly demanding case,
Batynkova described a client seeking a luxury rented house complete with a full-size
fitness complex and cinema worth $100
million. Rents themselves for Usadba’s lettings start at $50,000 per month and go
up to about $70,000. Yet before the crisis,
back in 2007, it was not unknown for
some of Usadba’s luxury properties on the
outskirts of Moscow to fetch $100,000 per
month. Clients are often household names
and seek not just houses for themselves,
but also for their security personnel, said
Oksana Pisarenko, from specialist realty
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December 2009
agency Slavyansky Dvor, based along the
Rublyovskoye Shosse.
Slavyansky Dvor also deals in house
lettings of a potentially more affordable
range: the average rent being around
$15,000 per month. However, Pisarenko
pointed out, the rents rise sharply in the
run-up to the New Year festivities, “with
many being let out for between $20,000
and $30,000.”
There has been a spike in supply
for out-of-town real estate rental of late,
research by company MIEL-Arenda showed
in mid-November. From September to
October, the number of available properties leapt by 54 percent, MIEL published
on its web site. Many of these properties
come onto the market following the end
of the summer season in a typical annual trend, MIEL explained, when people
relinquish their rented dachas or houses.
While this does not necessarily represent
the elite end of the market, Pisarenko was
able to single out reasons for optimism
in the sphere: “Judging by experience of
past years, there is a leap in rental demand
around springtime.”
The most popular luxury houses circling the outskirts of Moscow are found not
just along the Rublyovskoye, but are also
particularly popular along the Kievskoye,
Novorizhskoye and Leningradskoye
Shosses, all which lead off to the west of
Moscow, on various latitudes. One decisive factor for tenants during any season is
the volume of traffic to which they will be
subjected when traveling to or from their
rented property. Traffic is worsening along
the main arterial roads out of Moscow,
so people seek alternatives to the most
heavily used roads, while trying to keep
Moscow’s Only Gated Community
Adjacent to the Anglo-American
School Of Moscow
Only 13 kilometers from the Kremlin
and nestled in a park setting, Pokrovsky Hills
is the most prestigious residential development
offering 207 Western-style townhomes,
ranging from 160 to 340 sq.m.
• 24-hour Security
• Day Care Center
• Secured student access to
the Anglo-American School
• Convenience Store
• Shuttle Bus Service
• Fireplaces
• Master planned landscaping
• ISDN and ADSL Connections
• Expansive exterior windows
• Picturesque water feature with waterfalls
• Community Center
• EMC office
For information, please, call
The Moscow Times Real Estate Catalog
phone: (7 495) 229-6600 • facsimile: (7 495) 229-6616
WWW.POKROVSKY-HILLS.RU
3
Residing at Alpine Altitude
CHAMONIX IMMOBILIER
by Alexander Teddy
Chamonix has about four million tourists a year and a thriving sports scene in summer as well as winter. It is located in the Mont Blanc Massif, Europe's highest skiing area west of the Russian Caucasus range.
ussia’s historic love of France is
not only heard in its language,
seen through its art and fashion, but also evident through
its holidaymaking patterns.
Cultural reasons aside, for a
country as vast as Russia, which arguably
has many of the same geo-physical trappings, it seems paradoxical that so many
of its people choose to pursue their winter
sports in France.
Yet “every man has two countries,”
Thomas Jefferson once said, “his own, and
France”. Even two hundred years on, this
universal statement seems true, especially
when it concerns the French mountains,
with their magnetic scenery and skiing
facilities. In terms of buying property, it
also seems logical that Russia’s winter-sport
enthusiasts look to France — the world’s
most popular tourist destination — in a
long-term bid to capitalize on the skiing
and other mountain-related opportunities
in the Alps, while also gaining access to
neighboring European skiing hubs.
winter sports are far from being the main
incentive for visiting. “Tourist numbers are
higher in the summer,” she revealed, citing
the attractive proximity of Mont Blanc, the
tallest peak west of Russia’s Caucasus, and
Europe’s third most visited natural attraction, according to the official ChamonixMont-Blanc web site. “In summer, people
come to pursue all sorts of summer interests from rafting and cycling to hiking and
natural tourism. It’s a hive of activity,”
explained Dos Santos.
The Mont Blanc massif does afford
impressive skiing conditions too, with a long
season at some of the highest areas for ski-
R
ing in Europe. It is this that seems to be of
particular interest to some Russians, who do
not shy away from buying the most expensive and luxurious apartments in the area.
Chamonix Immobilier’s sale range extends
from 200,000 euros to 800,000 ($300,000
to $1.2 million) and Russians, Dos Santos
said, go for the top end. “Of course, they
like value for money, and many of our
Russian clients are careful decision makers
on the financial front, but that does not prevent them from buying top properties.”
Many of the apartments owned and
occupied by Russians are for family vacations to the resort, which sees around
four million tourists per year. This trend
in part explains why most Russian buyers
are interested in long-term investments
in property — namely in order to have
a familiar family base for their trips to
Savoie, Dos Santos said. The region’s cuisine is another popular feature for tourists,
but the more functional advantage of having Geneva and its airport so near is what
gives the area an edge, she added. “People
like the ease of being able to travel doorto-door from Moscow in a little over three
hours. It’s comfortable and handy.”
Chamonix Immobilier said that it has
partners in Russia, such as Interproperties
Savoie’s Fare
avoie is one of the most skiing-rich
regions in the whole of France, and in
a number, although not all, of the area’s
popular resorts Russian real estate activity has a momentum and apparent fervor,
even of late.
The economic crisis has scared some
of Russia’s wealthiest into toning down
their sometimes infamous and indulgent
skiing jaunts in the country, as Savoie-based
real estate agents Immobilière Courchevel
recounted, saying Russian sales had fallen by
30 percent. However, Jocelyne Dos Santos
from Chamonix Immobilier, another local
real estate firm, said that Russian interest
and sales in their town were “thriving”.
An additional dimension to
Chamonix’s success appears to be that
4
PIERRE ET VACANCES
S
Avoriaz is a Savoie resort with projects pitched at the Russian market. Pierre et Vacances' latest development is being promoted by Moscow's IntermarkSavills.
The Moscow Times Real Estate Catalog
December 2009
PIERRE ET VACANCES
PIERRE ET VACANCES
Leaseback schemes, which are being used by several Russia−based ski resort developers in France, have also been reported as a useful way for firms to avoid making crippling valuations on assets for disposal.
and Arcasa Group, who help scout for buyers, while in France they have just opened
a Russia desk, with a native speaker to
facilitate deals. Dos Santos was able to cite
two “major sales” to Russian clients in the
last month, and six collaborative deals with
partner firms plus “many, many enquiries”.
She said that it is Russians’ cautiousness
that means they take longer to decide on
what to buy, but once they are sure, the
transaction moves quickly. A deal with
bank BNP Paribas on providing mortgage
schemes for potential buyers is also in
operation, Chamonix Immobilier’s web
site showed, and the company is affiliated
to international real estate agent Knight
Frank, acting as the local representative in
Chamonix. Such collaborative representation appears to be a common phenomenon
in Alpine resorts, where local firms keep a
hold on the market, preventing the major
international operators from moving in to
mop up all the business.
Chevallier Immobilier is another
example of this business practice, albeit
along slightly different lines. The local
Savoie company operates the international
Century 21 brand franchise, as seen in
a number of other countries, including
Russia. Chevallier is locally staffed and run
ters north of Chamonix and even closer to
the travel hub of Geneva.
Savoie itself is an historically complex
region that maintained a staunchly independent stance from the rest of France until
the 1860s, when the small kingdom was
absorbed into France proper. Nowadays,
although the region has distinct cultural
features, such as its food and wine, it is an
integral part of France’s tourism business
and its international attractiveness.
The Pierre et Vacances scheme in
Avoriaz requires investors to put 100,000
euros ($150,000) into an apartment in the
town, representing half of the total purchase cost. As with Chamonix Immobilier,
Pierre et Vacances offers mortgage plans
for its buyers, the difference with the latter
being that the option of a mortgage is built
into the purchase agreement, not a separate
feature to the deal. Of course, one major
consideration is that the Avoriaz project
has not been built yet, meaning investors,
whether from Russia or not, are not able to
try before they buy.
In fact, when it comes to leaseback
deals, sampling the goods investors purchase is not quite like buying a property
outright. The key feature of a leaseback deal
is that once the sale has gone through, the
the very emphasis on snowboarding in the
area makes Avoriaz a particularly attractive
snowsports location for the young. Tourist
feedback on the town’s official web site confirms this: “You can do whatever you want,”
wrote one French teenager. Indeed, some
of the smaller, one-bedroom apartments
planned for the Pierre et Vacances leaseback
project might be suitable for young individual holidaymakers in the area.
Leaseback operations are a common
feature of the French real estate market, as
well as being popular in the U.K. and the
United States. Since the start of the economic crisis, they have also been reported
as a useful way for banks and lenders to
dispose of toxic assets, by entering into
sale-and-leaseback deals with governments.
This would allow for the disposal of assets
without the need for crippling valuations
to be made of assets in the first place, the
BBC reported in January 2009. Indeed,
Chamonix Immobilier’s Moscow-based
partner, Kingsland, said that it too has
a number of leaseback operations in the
Rhone-Alpes region of France, meaning
this could become a popular means for
Russians to invest in luxury Alpine real
estate with the security of a guaranteed
return on their asset.
Russian clients are careful decision makers
on the financial front, but that does not prevent them from buying top properties.
Jocelyne Dos Santos
B. Gnezdnikovsky per.,
and offers sales and lettings from its offices
in both Chamonix and Les Houches, a
nearby resort that happens to be twinned
with Russia’s flagship ski resort, Krasnaya
Polyana, near Sochi.
Mountain Leaseback
n Alpine retreat of a different investment kind is being marketed via
Moscow-based firm IntermarkSavills. For
this its partner, Pierre et Vacances, a Parisbased company that runs a number of
investment projects in France and other
countries, is employing an already popular
tried-and-tested leaseback scheme to help
attract buyers. The new real estate project
is planned for the French Alpine resort of
Avoriaz, in Upper Savoie, about 80 kilome-
A
December 2009
seller then takes on a lease contract on the
property, allowing the owner to spend a proportion of time there, but commonly there
are leasing rules whereby the property is let
out to third parties on a short-term basis
for a set period of the year. For this Avoriaz
project, after ten years, the contract may be
renegotiated by the investor for a further ten
year lease, IntermarkSavills’ deputy marketing director, Oksana Kobzareva, wrote in a
press release for Pierre et Vacances.
The Pierre et Vacances project in
Avoriaz guarantees rental income on the 40plus square-meter apartments. They form
part of a complex that includes a large interior swimming pool and affords mountain
views on what is considered by some to be
the snowboarding capital of the Alps. Just
as the resort is popular among families,
M. Patriarshy per.,
75 sq. m, ID 50820,
1st Tverskaya−Yamskaya,
46 sq. m, ID 43743,
2,800$(81,200 rub)/month
3,500$(101,500 rub)/month
4,000$(116,000 rub)/month
Bogoslovsky per.,
Petrovsky boul.,
115 sq. m, ID 25733,
4,500$(130,500 rub)/month
Sechenovsky per.,
Blagoveschensky per.,
90 sq. m, ID 44704,
1st Zachatievsky per.,
75 sq. m, ID 47940,
3,000$(87,000 rub)/month
5,900$(171,100 rub)/month
14,500$(420,500 rub)/month
96 sq. m, ID 43377,
3,000$(87,000 rub)/month
Khamovnichesky Val,
The Moscow Times Real Estate Catalog
100 sq. m, ID 16515,
139 sq. m, ID 527785,
10,000$(290,000 rub)/month
227 sq.m, ID 53752,
5
VLADIMIR FILONOV
Russians Move Up in Elite Rentals
by Chris Willett
his year Russia was included
in HSBC’s International Expat
Explorer survey, and the country went straight in at the top
of the combined ranking — a
measure of disposable income,
level of luxury and increased savings. The
survey, which is only in its second year,
also listed Russia as home to the wealthiest expats. However, the report noted that
almost three quarters of its respondents
have changed their spending habits as a
result of the current economic crisis.
Against this backdrop the most
recent statistics available for Moscow’s
elite rental market show that foreigners are
much less active in the segment this year.
Although absolute numbers of enquiries
did not decrease, the share of foreign
clients looking for high-end rental accommodation in the city declined by 18 percent over the first three quarters of 2009,
according to a report by IntermarkSavills.
“Where last year 89 percent of our clients
were non-CIS foreigners, this year that
figure is 69 percent,” Galina Tkach, the
director of the company’s leasing department, told REC.
The profile of an average client for
a high-end rental property is changing,
wrote Andrei Sado, director of Penny
Lane Realty’s elite rentals department,
in a recent report. “The balance between
T
6
foreigners and Russians has changed.
Where last year they were equal, today
the number of expats is one third of the
total number of renters,” he wrote, adding
that exact ratios differ according to which
price bracket the property is in. Foreigners
dominate in the $3,000 to $7,000 per
month bracket, while renting the most
luxurious apartments remains the preserve
of locals — 80 to 85 percent of those renting properties at over $12,000 per month
through the company are Russian.
“The main reason is that in many
companies expats are being replaced by
Russians,” said Tkach. It is no surprise
that the economic difficulties have made
companies reconsider whether to hire
expats or local staff. This is not necessarily because the wages Russians expect
are less, as this is very often the reverse,
but because of the compensation packages and added expenses of bringing a
foreigner into the country, especially with
increasing bureaucratic difficulties in the
legal process. “With fears of a second
wave of the crisis in the summer, many
companies were trying to save on anything they could,” said Sado.
Although a reduction in the number
of foreigners being brought over by large
corporations is the major cause, a cluster
of other factors is also responsible for
some of the skew in the figures.
“We are also seeing a number of
Russians returning from CIS countries
and further afield,” said Tkach. These
repatriates are also affecting the statistical
figures. Noticeable levels of repatriation
began during the boom years, when many
Russian professionals with international
experience were sought by headhunters
for their dual understanding of Russian
and international practices. Now, with
HR directors under increased pressure to
bring value for money with every appointment, this trend is continuing.
A further factor influencing the
changes in ratio has been “an increased
number of Russians delaying purchasing an apartment and deciding to rent
instead,” said Maxim Mokeyev, executive director at Evans Property Services.
However, he did not confirm the current
trend, instead citing a shift away from
expats during fall 2008.
Noted soon after the economic
downturn began to affect Russian realty,
the increase in properties and clients
entering the rental market waiting for better times to buy and sell could be ending.
The number of apartments moving to the
sales market increased in the third quarter, IntermarkSavills noted in its report.
Overall the elite rental segment appears to
be relatively steady: the fall in rental rates
has abated, demand is now stable, albeit
The Moscow Times Real Estate Catalog
with interest concentrated at the lower
end of the segment, and supply volumes
have decreased slightly.
Continental Shift
t is not only the ratio of foreigners to
Russians that is changing in Moscow’s
elite rental segment. The internal make-up
of foreign renters has undergone significant changes, with continental Europeans
overtaking Anglophone expats. In the first
three quarters of 2008, the British were
the single largest group of elite renters,
accounting for 37 percent of the total,
according to statistics from Penny Lane.
This year that figure fell to 28 percent for
the year to September 2009, and German
tenants, 29 percent of the total, are now
just ahead.
Meanwhile, French lessees have doubled their share in the number of foreigners
renting elite properties over the same period, at the expense of U.S. expats. Despite
this, tenants from the U.K. carry the most
financial weight, as 71 percent, according
to the same report, have a budget of over
$3,000 per month. For comparison, 21
percent of French expats, 48 percent of
Germans in Moscow and 42 percent of
American expats spend over this figure.
While these figures provide an insight
into the city’s elite rental market and
I
December 2009
A Breakdown of Foreign Rental Demand
September 2008 — September 2009
A Breakdown of Foreign Rental Demand
January 2008 — September 2008
France
10%
Others
countries
5%
U.K.
37%
Others
countries
7%
France
20%
U.K.
28%
Germany
22%
Germany
29%
United
States
26%
United
States
16%
SOURCE: PENNY LANE REALTY
beyond, any observations drawn should
come with a rider in large print. The data
that each agency provides can only give a
partial picture. The elite segment, by its
very nature, is comparatively small. What
is more, each agency has its own areas of
specialization, specific corporate clients
and historical ties, all of which are likely
to be reflected in their statistics.
Also, the definition of both nationality and expat in these situations is highly
subjective. “It’s difficult to define the
nationality of many families,” said Tkach.
“Many have, say, a Russian husband and
a wife from wherever, or the other way
round... we usually categorize them by the
person we’re dealing with, but this is not
always accurate.”
Effect on the Ground
evertheless, these changes have had a
slight influence on the demographics of certain areas. “Patriarch's Ponds
is changing from an expat location to a
Russian one,” said Sado. The area has
been known as an expat location, and is
particularly popular among the British.
However, it is equally popular among
N
way of an explanation in its latest quarterly report.
Meanwhile, one particular area
hitherto dominated by Russian residents
has seen an increase in the number
of expats around. The Rublyovka, or
Rublyovskoye Shosse, has long been the
elite location for Muscovites, but with
the opening of the International School
of Moscow on Krylatskaya Ulitsa, the
surrounding district has become increasingly more international.
However, not all realtors believe
there have been any major shifts. “At the
moment we don’t see the demographics
of specific areas changing,” said Mokeyev,
explaining that areas historically favored
by expats were also long-standing favorite
spots for Russians. “Also, expats’ adoration for some areas is dictated by practicality,” said Mokeyev. “For example, many
French families with children choose to
rent in the Chistiye Prudy area because
their kids can walk to and from the Lycée
Français,” he explained.
A further area where foreigners are a
major constituent of the client base is the
city’s elite residential complexes. Moscow
has a range of elite residential compounds
The balance between foreigners and Russians
has changed. Where last year they were equal,
today the number of expats is one third of the
total number of renters.
— there are private owners that are undercutting that rate considerably,” she said.
“Pokrovsky Hills is still OK. It has
the Anglo-American School and is not a
long drive to work [in the center],” said
Sado. Nor does the complex experience
any depreciation because, excluding property owned by the U.S. Embassy, all the
residences are in the operating company’s
possession, said Tkach.
However, those managing some of
the city’s major residential complexes refute
claims that these trends have had an effect
on them. “We haven’t felt a difference at
all,” said Yelena Slesareva, property manager at Pokrovsky Hills. “The number of
foreigners [renting] remains the same.”
“The segment is quite stable — that
is residential complexes such as Rosinka
and Pokrovsky Hills,” said Anatoly
Valetov, deputy director general at
Rosinka. Yet, both these residential complexes have noted an increase in interest
from Russians in recent months. “There
are now more Russians calling, but this is
just demonstrating a growth in interest,
and not all of them are becoming tenants,” explained Slesareva. “It is not causing a major change,” added Valetov, at
whose Rosinka development only around
10 percent of the residents are Russian,
with the overwhelming majority of tenants coming from a range of 30 different
countries.
THE MOST IMPRESSIVE RESIDENTIAL COMMUNITY
offers
WESTERN STYLE APARTMENTS
at
AFFORDABLE PRICES
Andrei Sado
Russians, many of whom are now able
to move into the area as rental rates are
changing and the number of foreigners in
the area decreasing.
Further changes are linked to general trends in demand for Moscow's elite
rental property, which increased over the
third quarter of the year. The area around
Leningradsky Prospekt has been attracting fewer foreigners recently, said Tkach.
Initially popular as an alternative area,
out of the center yet close to a number
of international schools, interest in rental
properties along and around the street
has decreased fourfold compared with
statistics from the same period in 2008,
she explained. Many of these families that
looked at the area can now find a place
to rent in one of the city's international
compounds, IntermarkSavills wrote by
December 2009
where the properties are available for rent.
Mainly focused at high-salaried foreign
executives with families, these complexes
tout security and community atmosphere
as promotional features. One of the city’s
oldest, the Rosinka residential complex,
specifically dubs itself ‘international’ and
even celebrates foreign events such as the
U.S. Thanksgiving holiday.
“The city’s residential compounds
have been seriously affected by the economic situation in general,” said Tkach.
In Rosinka there is always one property
available, but vacant residences are usually occupied quickly, she explained. The
compound has many individually owned
properties, which is causing a certain
degree of depreciation. “If a property is,
say, worth $10,000 per month — and that
is not what Rosinka would lease it at now
FURNISHED AND UNFURNISHED APARTMENTS AVAILABLE
Management and Leasing: UPDK-Hines
113/1 Leninsky Prospekt, 117198 Moscow, Russia
Tel.: (7 495) 956−5050 Fax: (7 495) 956−5920
www.parkplacemoscow.com
The Moscow Times Real Estate Catalog
7
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ning, on you
SPECTIV
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FROM
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The city's elite residential complexes maintain that they have not been affected by the change in ratio between expats and Russians that realtors have noted.
Valetov explained that this stability is because his tenants’ are less likely
to have lost their jobs recently. “Our
clientele is predominantly the top management of companies here, and those
that are being made redundant are usually slightly lower down, not the very top
managers.”
Mokeyev similarly disagrees that
demand for the city’s elite residential compounds has been strongly hit. Changes in
the trend since October could be partly
behind the difference of opinion. “The
situation seems to have been changing
in the last few months,” he said. “While
in August, we were able to show several attractive options in one of the compounds, in October there were no readily
available, furnished properties.” Indeed
various market players commented on the
relatively fast-changing nature of the elite
rental market in the city.
One further consequence of locals’
increasing role in this market segment
has been the altered approaches some
firms are now taking in their dealings
with elite rental clients. In September
IntermarkSavills introduced a no-commission service. “This is more for the
Russians,” explained Tkach. Other companies are also offering similar deals. The
services Russians require are fewer as they
are already in the city, she said.
This publication is registered by
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December 2009
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The Moscow Times Real Estate Catalog
9
Conferences
www.events.moscowtimes.ru
The Russia Mufties Council
Supported by: Russian–Arabic Business Council
Co-organizer:
Partners:
10 December 2009
Marriott Aurora Hotel, Moscow (Ul. Petrovka 11/20)
ISLAMIC FINANCE
POTENTIAL FOR DEVELOPMENT IN RUSSIA
PROGRAM:
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World experience in realising principles of Islamic banking and finance
Forecasts for adapting Russian law and opportunities for realising methods of Islamic finance in Russia
Russian normative law base and Islamic finance instruments: murabach, sukuk, takaful
Involving traditional banks in the system of Islamic financing
SPEAKERS INVITED:
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Stanislav Voskresenski, deputy minister, Ministry of Economic Development of the RF (to be confirmed)
H.E. Gaston Stronck, Ambassador of the Grand Duchy of Luxembourg to the RF
Khairul Nizam, Trade Commissioner, Embassy of Malaysia Moscow
Kamil Iskhakov, Organization of the Islamic Conference
Deputy Chairman of Central Bank of Iran (to be confirmed)
Masroor Haq, head of MENA at VTB Capital
Andrew Baird, Berwin Leighton Paisner
Madina Kalimullina, Mufti Council of Russia
Alexander Tuzenko, Norton Rose
Yegor Batanov, Pepelyaev, Goltsblat and partners
Yury Tuktarov, Avakyan, Tuktarov and partners
Aleksei Kuznetsov, Ernst & Young
Alexander Kazakov, Gazprombank
Rustam Vakhitov, Pepelyaev, Goltsblat and partners
Renat Bekkin, L.L.M., leading expert of Mardjani Fund
Andrey Zhuravlev, Bank of Moscow
Farmida Bi, Norton Rose
Representatives of Federation Council of the RF, Ministry of Economic Development of the RF, Ministry of Finance of the RF,
Association of Regional Banks of Russia
Payment: 15 000 rubles + VAT
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Newest offers of exclusive properties for rent and sale
SOKOL
TVERSKAYA
Attractive modern style apartment in high class
development. The complex offers full range of
amenities such as security, video surveillance,
underground parking, well-equipped gym,
swimming pool, playground, car wash.
82 sq.m, 2 rooms, 2 bathrooms
144 000 RUB
(5 000 USD)
This is a traditional Moscow residence in a
Stalinist building not far from the Kremlin on the first block of Tverskaya street.
The apartment occupies last 3 floors of the
house.
210 sq.m, 6 rooms, 3 bedrooms, 3 bathrooms.
287 000 RUB
(10 000 USD)
LOT # 7839
TSVETNOY BOULVAR
Classic style apartment, nicely furnished
and fully equipped with modern appliances
in elite development. Underground parking.
120 sq.m., 3 rooms, 2 bathrooms.
158 000 RUB
(5 500 USD)
LOT # 7844
LOT # 8678
CHISTYE PRUDY
Safe living in the center. This bright and
spacious apartment will suit you if you
prefer to stay in a new building with
underground parking for affordable price.
Contemporary décor and Chistye Prudy
location complete the picture.
100 sq.m, 2 rooms.
144 000 RUB
(5 000 USD)
LOT # 4350
KRASNAYA PRESNYA
MOSFILMOVSKAYA UL.
Perfect for modernizers! A newly renovated
stylish apartment in Krasnaya Presnya
will take you away from noisy crowds and
the traffic thanks to a propitious location,
though it gives easy access to the center
and to the west of Moscow region.
50 sq.m, 2 rooms, 1 bedroom, 1 bathroom.
100 000 RUB
New development in ecologically harmless area
of Moscow! A gorgeous newly renovated 3-bedroom apartment in short distance to the wonderful
lake and the park of Vorob’evy Gory. Expensive
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160 sq.m, 2 bathrooms, underground parking
287 000 RUB
(10 000 USD)
LOT # 7988
LOT # 8576
KUTUZOVSKY PROSPEKT
ROSTOVSKAYA EMB.
Stunning two-level penthouse in elite building on the West of Moscow. The apartment
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280 sq.m, 6 rooms, 3 bathrooms, 3 dressing
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460 000 RUB
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Enjoy gracious living in this exquisite twolevel residence in a prestigious development. A rich, but understated palette of
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287 000 RUB
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LOT # 8716
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“KOPERNIK”
ROUBLEVO-USPENSKOYE
Moscow living at its best!
112 sq.m. of luxury and comfort, completely furnished and equipped, 2 bathrooms,
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Best out of town offers for rent and sale!
12 200 sq.m. of landscaped and guarded
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LOT # 5824
LOT # 3393
Price upon request
Price upon request
Merry Christmas and Happy New Year!
Moscow, 12/2 Efremova Street
APARTMENTS
and OFFICES
for RENT
Only 200 meters away from Leninsky
Prospect, in the locality of Third Circular Highway, near Gagarin Square.
Donskoy Posad Complex offers luxury apartments ranging from 88 to
216 sq.m and offices of 250 sq.m.
• 24-hour Security
• Child Activity Center
• Sport-Club
• Dry-cleaner
• Hairdressing salon
• Underground garage
• Satellite TV
• Community park
• Air-conditioning system
EXCLUSIVE
RESIDENTIAL-OFFICE
COMMUNITY
For information, call
Phone: (7 495) 935-7900
Facsimile: (7 495) 935-7905
E-mail: [email protected]