How to invest in luxury real estate?


Earnings in the luxury real estate market have always been attractive to investors. Such objects grow significantly in price every year. In addition, the interest from tenants and buyers is quite stable.

Real estate is one of the most reliable forms of investment. But for effective investment, it is important to choose promising locations. Moscow is the financial and cultural center not only of Russia, but also of the entire post–Soviet space.

Luxury real estate in the capital shows good potential for growth. Stable demand and scarcity make investments promising: especially now, when the «entry» into the market has somewhat decreased.

Which objects should I invest in?

The elite real estate market is represented by various types:

club apartments, penthouses and apartments in Moscow;
multi-level apartments;
private houses (villas, townhouses) within the Moscow Ring Road;
mansions in elite settlements.

Most of the facilities are located in the city center. Other signs of luxury real estate:

impeccable interior and exterior (original design, full functionality, the best appliances and furniture);
high level of security (security, restricted passage);
personal parking, most often underground;
high-class infrastructure for servicing residents;
uninterrupted engineering systems (including climate control).

Over the past 20 years, the premium segment has shown steady growth despite economic and political turmoil. At peak values, the «elite» took off more strongly than the business class.

The objects can be rented out for permanent and short-term rent. For example, in Moscow, the price of one month of a month of living in a small studio can reach 200-250 thousand per month. This is a good income even for the capital.

Small maintenance costs. The peculiarity of taxation in the Russian Federation does not make real estate ruinous for the owner.

Deficit. In Moscow, they are building more inexpensive and super-dense housing, so the premium segment will always be in price. Wealthy people usually prefer to live in the center or in other respectable areas, so they are willing to pay extra for convenience.

Stability is also a significant advantage. Although sharp price dips have taken place, never in history have assets become radically cheaper.

Security. The objects are subject to insurance, so the risks of damage to them are minimal.
The ability to change the destination. So, the villa may well become an apartment hotel, and the mansion — the residence of the company.

What should I remember?

When entering the market, it is important to correctly assess the value of the object. The direction of investment should determine the purchase: long-term or short-term lease, further resale or something else. Priority should be given to the legal purity of the transaction, since real estate may have encumbrances or legal nuances.

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