The annual growth in demand for housing in Europe among Russian buyers, according to the end of 2007, is 60-70%, Julia, the head of the foreign real estate department at BEST Real Estate, said at a press conference “New Opportunities for Investing in Foreign Real Estate” Titova.
“One of the main factors in the growth of demand for real estate abroad and the advantage of foreign markets is the low threshold for entering the market – from 35 thousand euros. In addition, if in Russia a person must have almost the entire amount, or take a mortgage, then abroad there is the possibility of phased investment in real estate, ”she said.
Titova added that Bulgaria and Montenegro with 23% and 17% respectively became the leaders in demand among Russians in the foreign real estate market in the second half of 2007. The top five also includes Spain – 16%, Turkey – 10% and the Czech Republic – 8%.
“Most Russians prefer Bulgaria and Montenegro, since they immediately remove the problem of the language barrier, which is still significant for many Russian buyers. In addition, the factor of cultural and territorial proximity is very important. That is why the demand for real estate in these countries continues to grow, ”said Titova.
According to her, Spain has somewhat lost the growth rate of demand from buyers due to the mortgage crisis in the USA, and in Turkey the market development is hampered by the fact that the government “does not fulfill some promises to investors”, and in the Czech Republic the development of the market is hindered by problems with a visa.
Speaking about prices for foreign real estate, Titova noted that the average price of 1 square meter in Bulgaria is 1 – 2.5 thousand euros, in Montenegro 2.5 – 4 thousand euros, and in Spain 2.5 – 6 thousand euros.