Real Estate


Q2 2008

EditorsТ view

  • June 01, 2008

HP, Foxconn to Build St. Pete Computer Plant

  • June 01, 2008
Hewlett-Packard announced May 16 that it was teaming up with Foxconn International to build Russia’s first foreign-owned computer factory.

$570 Billion for Transportation Overhaul

  • June 01, 2008
Prime Minister Vladimir Putin approved May 20 the country’s largest spending project since the Soviet collapse, a $570 billion program to overhaul and expand the country’s transportation infrastructure over the next seven years.

Defense Ministry to Auction Off Own Bases

  • June 01, 2008
The Defense Ministry is auctioning off billions of dollars’ worth of property to help fund the construction of much-needed housing for officers.

Appeals to Continue: Fight For Rossiya Site

  • June 01, 2008
In a far-reaching ruling March 31, Moscow Arbitration Appeal Court No. 9 nullified contractual agreements between City Hall and ST Development, which was awarded the rights to develop Zaryadye, where the hotel Rossiya once stood.

Mirax Group Expanding Aboard, Undertakes Internal Restructuring

  • June 01, 2008
In its first venture into the British market, Mirax Group has bought a 19th-century townhouse in central London, which it will turn into high-end accommodation for rich Russians, the company announced at the beginning of May.

Russia Takes Center Stage at MIPIM

  • June 01, 2008
Yet another record was set for Russian attendance at this year’s MIPIM property fair in Cannes, with 713 companies exhibiting – a 30 percent increase on last year – according to a press release from Reed MIPIM, the event’s organizer. The fair ran from March 11 to 14.

Snegiri Moves Into Residential Sector, Builds Tower, Plans IPO

  • June 01, 2008
Developer Snegiri, owned by Alexander Chigirinsky and Igor Nesterenko, has announced plans to build a new settlement named Rezidentsiya Rublyovo on prestigious Novorizhskoye Shosse, 1 kilometer from the Moscow Ring Road or MKAD, Vedomosti reported. Four years ago the company acquired the 60,000-square-meter site of the Rublyovo-2 holiday home, which is to be redeveloped with 134 townhouses to designs by British company PRP Architects, manager of Rezidentsiya Rublyovo Yulia Makarova. Investment totals $230 million, she added. Rezidentsiya Rublyovo represents the first venture into the suburban residential market by a company that has up till now focused on urban and commercial development.

Gap to Hit Russia, Other Retailers Hold Back for Now

  • June 01, 2008
Gap Inc. announced May 20 that it had struck a franchise deal with Turkish bank Fiba Holding to bring its popular Gap and Banana Republic brands to Russia, the Moscow Times reported.

What's up?

  • June 01, 2008

Staying Put in Russia

  • June 01, 2008
Are foreign developers and contractors welcome in Russia? Despite the potentially rich pickings, Russia is often perceived as a difficult market. Even for companies who have successfully managed to get their foot in the door, operating here is scarcely any easier, despite the current boom. Cases such as the legal wrangles that followed the tender for the redevelopment of Moscow’s Hotel Rossiya, won by a controversial bid from domestic operator ST Development, have fuelled suspicions that the scales are tipped against outsiders. This view appeared to be confirmed by a study of the industry published late last year. It showed that the number of foreign construction firms building on Russian soil was falling, slumping in November from 750 to 733 - a 2.3 percent decrease, Rossiiskaya Gazeta reported in December.

More Than Just a Stopover

  • June 01, 2008
More than just places to arrive and depart for your flight, in recent years modern airports have become destinations in themselves. They have developed into vibrant micro-cities located at important crossroads - cities that literally never sleep. They are business and convention centers for fast-moving corporate executives, shopping galleries for family visitors, restaurants and food courts for all the public, state-of-the-art casinos and amusement arcades for gamblers, and home to the most sophisticated and trendy hotels. Sounds familiar? No, not at all - if you are in Moscow.

Rejuvenating Retail

  • June 01, 2008
In early 2005 there were over 300 shopping malls and combined retail-cum-entertainment complexes in Russia. Since then that number has doubled. In Moscow alone in the same period the number of malls has increased from 85 to 134, while the aggregate floorspace of all the existing malls, as well as those under construction or billed for delivery, has topped 4 million square meters.

Safeguarding Ideas

  • June 01, 2008
The tradition of bringing in foreign architects to adorn both of Russia’s capitals goes back a very long way. The cathedrals and fortifications of the Moscow Kremlin were designed by Italians, while bridges, palaces and churches in St. Petersburg were built by the likes of Bartolomeo Rastrelli, Domenico Trezzini, Carlo Rossi, Auguste Montferrand and Vincenzo Brenna, who hailed from all across Europe.

Leasehold Buyouts

  • June 01, 2008
In 2007 the Moscow real estate market experienced another boom with a significant influx of capital accompanied by high returns. At the same time, most players still regard Moscow as one of the least transparent real estate markets in Russia, to say nothing of the rest of Europe. This is due not least to unclear land legislation and practices that often contradict federal legislation.

Skimming the Cream

  • June 01, 2008

Registering And Taxing Real Estate

  • June 01, 2008
One of the main legal issues concerning the taxation of real estate in Russia is the point whereafter the tax authorities deem real estate a taxable item subject to property tax. This point is reached before the owner of the building is actually recognized as such in law.

Suburban Overview

  • June 01, 2008
In the last few years the real estate market in the Moscow region has changed greatly as far as the demand for high-end housing is concerned. Whereas three years ago a 1,000-square-meter mansion with designer fittings on a 1-hectare site on Rublyovo-Uspenskoye Shosse that sold for $8 million dollars was the Moscow region’s most expensive property, there are now several suburban residences which are going for $50 to $100 million dollars. The basic criteria for elite housing are as follows.

Governor Challenged Over CityТs Preservation

  • June 01, 2008
Living City, the local non-governmental organization that delivered a list of recently demolished historic buildings to City Hall in late April, has announced it is putting together an exhibition to demonstrate the scale of the historic center’s destruction under Governor Valentina Matviyenko.

DHL Opens New Terminal Near Airport

  • June 01, 2008
A new DHL terminal opened in St. Petersburg last month to handle the rapidly growing volume of DHL customers in the Northwest region of Russia. Located on 5th Predportovy Proyezd, it will serve as a central sorting, processing and transit facility for international and domestic shipments in St. Petersburg and the Northwest region.