How do Russian investors choose real estate abroad?

To begin with, it is necessary to clarify that aspects such as the volume of transactions and the size of the budget have an opaque characteristic. According to the current norms of Russian legislation, all real estate transactions must be registered in the country where the property is located. This is why it is impossible to track closed transactions within Russia. This leads to a logical question for buyers: why seek the help of intermediaries in our country when it is possible to contact a Russian-speaking realtor directly on-site and thus avoid potential problems? In this context, it is important to note that Russian investors prefer to remain in the shadows, not wanting to disclose the details of their financial operations.

Adequate differences between buyers and investors

There are significant differences among buyers of foreignreal estate and investors. Investors tend to be more comfortable clients, as they are interested in financial performance rather than details such as the view from the apartment or its interior. They make decisions based on objective metrics, and ideally approach real estate purchases with the same equanimity as buying stocks - without regard to personal emotions. Previously, many considered foreign real estate as a kind of "summer house", buying it based on the availability of spare cash. However, this perspective is now losing its appeal as potential buyers have less available funds, which is modifying the approach to real estate trading abroad.

Investor profile

Now let's take a closer look at the investor profile. The first category consists of about 30% of specialists who possess professional skills and experience. Typically, these are individuals with higher education who have a good understanding of financial markets and a high level of financial literacy. These investors approach real estate transactions very responsibly and thoughtfully.

• They do not participate in tours for sightseeing buildings.
• They make purchases based on facts without emotional coloring.
• The method of dealing with the questions is more academic.

These individuals may be willing to invest several thousand dollars in legal services for thorough due diligence on properties and the market. They seek to obtain additional information from various sources, such as reports from agencies like Reuters, foreign publications, and others.

Advantages and disadvantages of the first group of investors

The main advantage of this group is that they often behave like wholesale buyers, open to purchasing entire floors or sections. They are willing to use financial instruments such as mortgage lending, and, importantly, they have knowledge of how to properly structure deals. However, this category also has its drawbacks.

• These investors may tend to take a long time to make decisions.
• The due diligence process can take months.
• They don't feel particularly excited about the buying process itself.
• It's hard to perceive new markets.

Unfortunately, there is almost no systematic statistics on transactions with this category of clients.

Spontaneous investors

The second group includes spontaneous investors, who are often less professionally trained than the first category. Their decisions are in most cases subject to subjective influences and emotions, which may lead to impulsive purchases of objects. Spontaneous investors, as a rule, do not have a clear plan of their actions and make decisions based on current trends or personal preferences.

Working with this group requires a completely different approach and strategy, as they can actively participate in the market, but their actions are often unpredictable, which creates various problems for both sellers and realtors.

Recently, many citizens of Russia are beginning to consider the possibility of investing in real estate abroad. This is especially relevant for those who already have positive experience in acquiring foreign property or own assets in their home country but seek to diversify their investments by shifting focus to more stable and predictable markets. This opens up new opportunities for them in countries with relative financial stability. Such investors find themselves in a favorable situation: they are not in a hurry to earn money actively, but they are aware of the dangers associated with dependence on a single market. Therefore, they are willing to explore options for transferring their assets outside the country, for example, to France, with the aim of obtaining stable rental income, which is around 5% per year. These so-called spontaneous investors strive to build reliable assets to ensure their financial security.

The experiences and challenges of investors

One of the main advantages of this category of clients is their prior experience in the real estate sector, which makes them better prepared for making further purchases. They are able to provide the necessary deposit and have sufficient savings to carry out transactions. However, there are also certain drawbacks:

• Many of them cannot prove their legal income, which becomes an obstacle to obtaining a mortgage loan.
• They are not always aware of international markets, which requires real estate professionals to put in extra effort to clarify situations and provide training.

Phantom buyers and their characteristics

Another group consists of so-called phantom buyers or investors, who make up more than 30% of the total client base. These individuals are eager for knowledge, willingly attend seminars, and actively delve into various aspects of the investment process. However, they are often accompanied by caution, and they may:

• Ask to translate all the documentation into Russian.
• Prone to conflict situations.

The main goal of such clients is the need to not present themselves as those who are actually not interested in real investments. These consumers often gather information from various sources on the internet and then present the results of their research to agents. The main advantage of working with them is that they keep specialists alert and attentive.

Collaboration with developers

Intermark Savills is actively seeking collaboration with developers under exclusive agreements. This has its advantages, as if a client attempts to establish direct contact with a developer, the agency will be immediately notified of this fact via email. Any awkwardness that arises in such situations is quickly resolved, as incidents can be easily settled.

Success stories and reliable partners

Real estate developers tend to emphasize the success stories of their partners. However, only a small number of Russian real estate agencies can boast significant achievements in this area. Working conditions and business methods in the Russian and foreign markets are quite different, which creates additional difficulties for Russian companies operating outside the country. It can be quite difficult to obtain exclusive sales rights, but if you manage to successfully complete several deals, developers will start to seek cooperation with you.

At first glance, it may seem strange why developers are willing to grant exclusive rights.

The question of trust in strangers

The question of trust in strangers in the context of the Russian real estate market is becoming increasingly relevant. Many people are asking: how can one confidently rely on someone when there are no associations in our country regulating professionals in the field of foreign real estate, and the market itself often turns out to be quite complex and opaque? How can one gain access to exclusive offers in this specific area?

Building a reputation

First of all, you need to build up your reputation, which can be appreciated by those around you. You should also remember that Russian people are not always easy to trust. Therefore, it is important to have some kind of organization or association which could confirm your qualifications and the seriousness of your approach. If you do not have a well-known name or a stable reputation, then simply state to the developer: "Hello, I want exclusivity!" will be extremely difficult. This situation is typical not only for real estate, but for business in general.

Specialization and market knowledge

In this field, narrow specialization and a deep understanding of the market are crucial. Take a look at how the Russian real estate market operates: when you approach an agent with a request for a specific address, they effortlessly provide comprehensive information about the building and the apartment owners. This is the work of a true professional. For their knowledge and experience, such specialists receive a well-deserved reward.

The situation in the foreignreal estate market

Let us now evaluate the foreignreal estate market in Russia. During the period of highest interest, there were cases of people rushing into this new and unfamiliar industry without bothering to work on their experience or training.

The role of knowledge in customer trust

If a potential client discovers at the beginning of the conversation that you lack the necessary knowledge, they are likely to switch to another specialist. However, if you are truly knowledgeable about foreignreal estate, clients will be willing to pay for your services and return to you again. If you decide to enter this field without proper preparation, you risk creating a bad impression, which will lead to the ineffectiveness of your efforts.

Formation of the company's image

The formation of your company's image in the eyes of investors is a crucial factor. I see advantages in advertising in glossy publications. Placing a full-page ad and then mentioning it in a conversation with a client would create a good impression. The more prestigious the magazine, the stronger the effect of such advertising will be. These activities can indeed yield results: a first impression of the company is created, and after an article in a glossy magazine, the client comes back.

Case Study

I will give a well-known example from my practice: one client learned about the "Saint Kitts and Nevis" project through the internet, and then his friend, while flying first class, found an article in a magazine and decided to call him. In the end, they came to my office together. This means that a publication in a glossy magazine doesn't provide all the information, but it serves as a mark of quality. Moreover, there is an opinion that if you paid for advertising, it means your company is indeed serious. Glossy publications are starting to be perceived as an indicator of success.

Modern forms of communication

When it comes to email newsletters and new communication formats, they also play an important role in information dissemination systems. Such tools allow you to convey knowledge to your target audience, shaping your image as a professional in the industry. Considering all the aforementioned aspects, it can be emphasized that successful activity in the field of foreignreal estate requires not only deep knowledge but also the ability to effectively present information, gaining the trust of clients.

Conclusion

It's important not just to achieve success in business, but also to establish a reputation as a reliable partner, so that clients return and newcomers aren't afraid to seek your services.

Conclusion

In conclusion, it can be said that the foreignreal estate market for Russian investors is indeed diverse and requires thorough analysis. I realized that despite the opacity of the number of transactions and budgets, as well as the lack of clear traces of these transactions in Russia, interest in investing in foreign real estate continues to grow. Russian investors are becoming increasingly diverse – from professional players who work with calculations and logic to spontaneous investors who, driven by the need to diversify their assets, seek stability in foreign markets.

This diversity requires specialists to be highly skilled and flexible in their approach. I understand that working with different categories of clients can be challenging, but at the same time it creates opportunities for in-depth analysis of each client's needs. In particular, the realization thatimaginary investorsThey can complicate interactions to the maximum, which suggests the need to establish trusting relationships and improve customer awareness. This, in turn, will help avoid misunderstandings and increase consumer loyalty.

Collaboration with developers

Our collaboration with developers, which offers exclusive conditions, also plays an important role. As we strengthen our reputation, reliability, and successes in project implementation, developers become more interested in establishing partnerships with us. I see real benefits in this work, as having exclusive rights not only simplifies the process but also protects the interests of all parties involved.

Key aspects of market analysis

In my analysis, I tried to highlight the key aspects that help to gain a deeper understanding of the foreignreal estate market and the needs of investors. It is important to remember that each client is unique, and the approaches to them should be individualized. Understanding this principle will ultimately contribute to successful development for both investors and market representatives.

I hope that the knowledge and ideas gained will be useful for readers seeking to understand the peculiarities of the Russian real estate market abroad and establish successful investment practices.