Property News

Where are those endangered species… the real estate investors?

Where are those endangered species… the real estate investors?
Inflation is rising around the world, prompting interest rate rises, peripheral Europe is in trouble, and the housing markets like China, Hong Kong, Singapore, India, and Brazil are peaking.

For property markets this looks like a fairly lethal combination of stagflation and overvalued property markets. Interest rates will go up, while the economic recovery is weak except in Asia and Latin America. Many property markets are overheated and have nowhere to go but down.

Property markets in Russia, China and India are also overvalued, prompting their wealthier citizens to invest overseas.

According to recent statistics, it’s the Russian’s who are pouring over US$12 Billion into overseas real estate. Property in Bulgaria, Spain, and Turkey are particularly popular as Russians, like the rest of us, like to spend their summers on beaches. Now they are looking at different regions with Asia and parts of the States being some of their preferred choices.

Interestingly, a new class of Russians is buying abroad - a survey by the Russian property magazine International Residence found that some 40% of the attendees at a recent Moscow property show were looking to pick up properties for between 100,000 and 250,000 Euros, compared to 10.5% expecting to spend more than 500,000 Euros.

The Facts:
- The Russian overseas property market is now estimated to be worth in excess of $.12 billion.
- A rise of 30% in demand for property abroad in 2010.
- The Russian economy is rebounding faster that most European countries.
- Russia is now the largest exporter of crude oil and the results are seen in the economy.
- Most Russians do not have mortgages resulting in substantial disposable income to invest in real estate abroad.
- Russia is home to more than 1 million so called “mass affluent” with up to $.425,000 in cash assets.
- Expats living in Russia are amongst the highest paid worldwide with 36% earnings in excess of $.250, 000 per year.

Moscow based aiGroup are perhaps one outfit who are particularly in a very strong position to enable overseas developers to capture some of this Russian investment. They currently organize eight real estate expos a year plus they publish Russia’s leading overseas property magazine International Residence, and they own the country’s top property portal,

Kim Waddoup the CEO of the aiGroup said, ‘It is true that Russians are out there buying up overseas real estate in large numbers, however don’t expect to turn up and start signing contracts, as it takes time to gain their confidence. Don’t throw away valuable funds on unreliable marketing... The Russian market is currently one of the fastest growing overseas property markets. If you are interested in targeting this region we offer a number of highly effective marketing concepts based on two decades of experience in the Russian market.’

To assist developers and realtors, the aiGroup have set up a number of entry-level packages designed to provide an opportunity to ‘test’ the market. These special combination packages include listings in their magazine and portals up to full advertorial campaigns, starting from as little as ?.2, 620.

Waddoup added, ‘It is important to remember that Russia is a developing country and that the principal of ‘normal’ people buying abroad is a relatively new one. However the interest is strong, money is available and there is a staunch desire to own property abroad.

Russia is also a vast country covering 10 time zones. Whilst much of the wealth is concentrated in Moscow & St. Petersburg, the emerging “mass influent” are now to be found in the major cities throughout the Russian Federation. To target potential investors a creative marketing plan should include both Internet and Print advertising. With our magazine and portal, backed with 19 years of experience we are highly positioned to assist you.’

For details of their assistance packages check out aiGroup

Press Contact : Mike Bridge