How do Russians master foreign investment real estate markets?

Growing interest in foreignreal estate

Recently, there has been a noticeable increase in the interest of Russians in buying foreignreal estate for the purpose of its subsequent rental. More and more compatriots are exploring various international markets, and the most attractive for them are countries famous for their resorts, such as Spanish coasts, Bulgarian resorts and French cities. This is due to the fact that at the height of the tourist season there is an active growth in the number of vacationers, which in turn leads to a high demand for rental housing. In addition, urban real estate, especially in countries such as Germany, also has high investor interest.

Selection of investment object

When choosing an object for investment, location becomes a key aspect. In large cities, Russians tend to prefer central sites and business districts with developed infrastructure. If we talk about resort real estate, it is often located in close proximity to the sea, which opens up picturesque views and makes such objects especially attractive. This opinion is supported byLyudmila Aksenenkohead of the foreignreal estate sector in the Moscow branch of Knight Frank.

Resort and urban real estate

Real estate experts note that resort properties are more versatile than urban properties. Lyudmila Aksenenko emphasizes that in large economic centers such properties should be considered as long-term investments for rent, while in resorts there is an opportunity to earn additional income through short-term rentals.

Recommended property types

Regarding the type of real estate.Boris BronsteinDirector of Kaiser Estate, recommends potential investors to pay attention to apartments in modern residential complexes or in resort areas. Usually, such properties are located near beaches and recreation areas and include convenient infrastructure solutions such as swimming pools and gyms. This is why they remain in demand among tenants.

Optimal choice for rental

If the main goal is to rent out real estate, many experts advise choosing inexpensive one- and two-bedroom apartments, as they are characterized by high liquidity and profitability. Nevertheless, the choice of country and type of real estate is largely determined by the financial capabilities of the investor.

Price categories for investment

It is important to note that there are several price categories depending on the funds available for investment:

• With a budget of up to 150 thousand euros, Russians can pay attention to such countries as Germany (Berlin), Czech Republic (Prague) and the United States (Florida), where they offer apartments.
• In the interval from 150 to 500 thousand euros suitable destinations such as Hungary (Budapest, Balaton), France (coastal and mountainous regions) and Spain (Costa Blanca), where you can also find apartments and villas.
• For more luxurious options, from 500 thousand euros, interest may cause France (Cote d'Azur, Paris), Monaco, Great Britain (London) and the United States (New York), where there are both apartments and villas for purchase.

Conclusion

Thus, analyzing all of the above aspects, Russians should carefully approach the choice of both the country for investment, and a particular property in order to maximize the return on their investment.

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Increased interest in real estate investments

Today, there is a growing interest in real estate investments, and many people are eager to find profitable options. By subscribing to our regular analytical reviews, you will be aware of the most promising offers on the market. We are grateful to you for choosing us! Subscription confirmation has already been sent to your e-mail.

Available markets for investment

If your investment budget does not exceed150,000 €You should look at stable and affordable markets in Europe, such asGermanyandCzech Republic. Popular destinations also includeFlorida(USA) andBulgariaespecially during the tourist season. There is a high demand for residential real estate.

Recommendations by city

For those who are willing to invest up to 150,000 €, we recommend exploring cities such asBerlinandPrague. Each of these cities attracts a large number of tourists every year and has a developed cultural infrastructure. Apartments in popular areas of the locations quickly find tenants. Expected rental yields in these cities range from4%to6%per year, as Natalia Zavalishina, CEO of Miel - DPM, admits.

Why choose Germany?

Germanyis becoming increasingly attractive to Russian investors due to its relatively low prices for residential real estate. In this country about60%of the population lives in rentals, which forms a strong market. Georgi Kachmazov, CEO of .ru, says that investor interest in Germany is growing due to its high market standards, stability and low risks.

Investment recommendations

• Acquisition of real estate for long-term lease in theBerlin.
• Focus on major university and industrial centers.

Czech Republic as an investment opportunity

As forCzech RepublicThe annual rental yields here are lower than in Germany, amounting to approx.3%-4%according to Global Property Guide. Nevertheless, to generate a stable income, it is worth considering small apartments in thePrague. For example, in the neighborhoodGrapes(Prague 2) you can buy a two-bedroom apartment of approx.90 square meterswhich could bring in about1,000 eurosper month.

Conclusion

Thus, interest in real estate in these countries remains high. Many investors are confident that these regions will provide them with good conditions both for living and for generating rental income. Before deciding to invest, it is crucial to carefully research the market and consider the available options.

Real estate investments

The most reliable ways of investing capital are investments in real estate located in well-known and popular regions. Such locations include not only Mala Strana and Stare Mesto, but also Grebenki and Orechovka. In such locations, the potential profitability can reach5%.

In addition, real estate experts in the U.S. highlight the state of the stateFloridaas one of the most attractive areas for investment. Owners of serviced apartments promise their clients an income from5%to8%net income depending on a number of factors. Apartments in the price segment from70 to 150 thousand dollarscan bring in owners from400 to 800 dollarsper month.

It is important to note that many of these properties already have existing contractual lease commitments, which significantly reduces the risks associated with the investment.

Real estate in Bulgaria

In Bulgaria, experts advise to pay attention to real estate acquisition opportunities, as there are many quality properties at reasonable prices in this country. Sergey Dalmatov, a realtor from RTL-Real Estate, emphasizes the advisability of investing in apartments on the coast.

At the same time, buying villas can be a less profitable solution, as these objects are not so popular among tourists who prefer more affordable accommodation options.

Rental income

It is estimated that the profits from apartments in major cities such as:

• Sofia
• Plovdiv
• Varna
• Burgas

will generally be comparable to the income from a good apartment in a resort. Rentals in cities tend to be cheaper and longer, while on the coast the cost is higher, but renters choose short-term contracts.

Investments in other countries

For those investors whose capital ranges from150,000 to 500,000 eurosThere are many attractive offers in countries such as:

• Hungary
• France
• Spain

Especially Hungary stands out among Eastern European countries by the attractiveness of its income properties. Here it is worth noting that real estate investments can be very profitable, because housing prices continue to fall every year - over the past few years they have fallen by about15%from the highest levels of performance.

It is important to know that the cost of housing in Hungary is on average per40%lower than its neighbors in Croatia. At the same time, rental yields in this country are often among the highest in Eastern Europe.

Rentals in Budapest and by Lake Balaton

Renting apartments in Budapest or houses in the resort by Lake Balaton can bring good profits. For example:

• In the western part of the Hungarian capital, in theBudepestYou can buy an apartment with an area of about90 square metersfor150 thousand eurosand rent it out to tenants for920 eurosmonthly, which gives a yield of about7.45%per year.
• Larger apartments, about200 square metersare estimated at an average of343.6 thousand eurosand can generate income in2,300 eurosper month, which corresponds to8.05%annual.
• Quality properties are available on the Balaton coast, ranging from120 thousand euros.

Despite moderate price fluctuations in recent years, the value of properties near the lake has begun to rebound, increasing by approx.6%after the crisis. Profit from rent in this region is6-7%per year; for example, a luxury villa with six bedrooms and a private pool is valued at200 thousand eurosand can surrender for2,800 eurosper week.

Investments in France: Reverse Leaseback

In France, investments in leaseback projects are becoming increasingly popular, especially for those looking for long-term benefits. The main feature of this scheme is that after buying a property, the investor leases it to a management company for a period of time, which is usually 10 years. At the end of this period, he gets the right to take full possession of the property. One of the significant advantages of leaseback is the possibility to reclaim VAT, which actually results in a saving of almost 20% of the total transaction amount.

Application of leaseback

Reverse rentals are often used in resort areas such as coasts and ski regions. For example, Pierre et Vacances offers buyers apartments in a new residential complex in Biarritz with prices starting from 220 thousand euros. The advantage of this offer is the proximity to the beach just 300 meters away, which makes it particularly attractive to investors. Moreover, the owners can be assured of a stable income of 3.75% per annum for ten years.

In similar conditions operates and luxury complex Les Terrasses d'Hélios, where the cost of apartments starts from 307 thousand euros and offers mesmerizing views of Mont Blanc.

Outlook for resort real estate

Georgy Kachmazov, a real estate market expert, notes that resort facilities can generate substantial income if professionally managed. Operator companies engaged in reverse rentals usually offer fixed rates of return from 3 to 4%. This indicates a high level of confidence of such firms that they will be able to offer their clients even higher returns, eventually reaching 10% or more.

Investments in Spain: Costa Blanca

Regarding Spain, Yuri Konstantinovsky, head of the partnership department of Leanga Costablanca, advises to pay attention to real estate investments on the Costa Blanca. He believes that one or two-bedroom apartments in popular areas such as Benidorm or other prestigious parts of Alicante contribute to good returns.

The following cities are also worth considering:

• Calpe
• Moraira
• Guardamar
• Santa Pola
• La Manga

For wealthy investors with a capital of over 500 thousand euros, special attention is paid to luxury complexes in the areas:

• Althea Hills
• Cabo Roig
• Campoamor
• La Zenia
• Benissa

Situation on the villa market in Spain

There is a shortage of villas in Spain today, especially near the sea. It is difficult to convince those who have sufficient funds to rent out their luxury real estate, as most of them already have a solid income. Therefore, in the high tourist season, such properties can bring significant profits, as the demand for rent exceeds the supply.

Most often, rentals of quality accommodation start before the end of the previous season or immediately after its completion. Small apartments on the first line or in areas convenient for walking to the sea are also in high demand. Taking into account the flow of tourists from Russia, it is advisable to consider properties located as close to the beach as possible - within 500 meters.

Investment opportunities in euro

The Euro opens up a wide range of investment opportunities. With such funds, you can buyreal estate in major cities such as Paris, London and New York, as well as a luxury villa on the Côte d'Azur. If you have a budget of a million euros or more, it gives you the chance to invest in several high-quality properties at the same time.

Real estate in France

In France you can find two or three bedroom villas for up to a million euros in picturesque locations such as Mougins, Cannes, Nice, Saint-Tropez, Vence and Cagnes-sur-Mer. For example, a three-bedroom villa with its own swimming pool near Nice can generate an income of 800 to 1,500 euros per week when rented out.

Luxury real estate

Properties priced above one million euros belong to the premium segment. Three zoned areas are now the most sought-after:

• Cap Ferrat
• Cap Martin
• Cap d'Antibes

In these places, the cost of real estate starts from five million euros.

Investing in the UK

As for the UK, many experts recommend paying attention to the capital. Roman Grigoriev, head of Longrad, emphasizes that real estate in prestigious areas of London is not only as reliable as Swiss deposits, but can also bring a higher income. According to information from London Property Watch, owners of apartments in London can expect a profit of 3 to 12% per annum. One-bedroom apartments are considered particularly profitable.

Tips for buying real estate in London

In London, the best option is to buy affordable accommodation in the center and then rent it for short periods of time. The city has a shortage of quality hotels at a reasonable price, and in recent years it has become popular among tourists, especially from Germany and France, to rent apartments instead of staying in hotels.

Portfolio investment strategy

When considering properties in the price segment of one million euros or more, it is worth considering a portfolio investment strategy. The essence of this strategy is the acquisition of several properties at the same time, usually of the same type and in the same country. Portfolio investing is particularly profitable in large cities such as:

• Munich
• Paris
• London
• New York
• Côte d'Azur

In these cities, you can buy several apartments and entrust their management to a specialized company.

Commercial real estate

In addition, real estate experts recommend that interested investors with budgets over one million euros should look at commercial real estate opportunities. If you are looking to invest up to one million euros, it is wise to consider buying retail or office space in liquid commercial properties in economically active European cities.

Your profits can increase significantly if you purchase a building that needs renovation. Once the renovation work is done properly, you can earn a steady and significant income.

Conclusion

In conclusion, I would say that the growing interest of Russians in investing in foreignreal estate is a phenomenon that not only opens up new opportunities, but also requires careful analysis and planning. The fact that the combination of resort and urban real estate is becoming increasingly popular confirms that investors are seeking to diversify their investments and find the best options with the highest returns.

It is also important to keep in mind that the choice of a particular country or region usually depends on personal preferences and financial capabilities. Countries such as Bulgaria and Spain offer transparent investment conditions and high liquidity. However, the quality of the property is also important:apartments with well-developed infrastructure and favorable locationwill certainly be in high demand among tenants.

Key factors for selecting an investment object

• Economic stability of the country
• Tourist appeal of the region
• Quality and location of the property

Based on the opinions of the experts I mentioned earlier, it should be noted that a reasonable position in the market involves not only more risks but alsopotentially high profitBy focusing on a variety of factors, including the economic stability of countries and their tourist appeal, it is easy to identify the most profitable investment opportunities.

Advantages of investing in foreignreal estate

• Diversification of the financial portfolio
• Stable rental income
• Inflation protection

Investing in real estate abroad is a strategic move that can positively impact your financial situation. This market continues to evolve, and the sooner we start exploring opportunities, the greater the chances that our investment will yield stable and long-term returns. Therefore, if you haven't considered foreignreal estate as a source of income yet, it might be time to start thinking about it.broaden your horizonsand consider this direction more seriously.