St Petersburg International Economic Forum

Russian Luxury Estate Market Is on the Rise

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In recent years, Russians have gained a reputation for picking up luxury properties in cities like London, attracted by the safe-haven status they offer. But the prime real estate market in Russia's capital offers great returns - for those willing to take the risks, analysts say.

Demand for prime real estate market in Moscow – and correspondingly, property prices - is on the rise, according to luxury real estate experts, with both domestic and foreign buyers attracted to the city.

"Many Russian property buyers invest both in London and Moscow," Olga Tarakanova, head of City Sales at Knight Frank Russia, told CNBC saying that the quality of construction and design were "absolutely comparable to high-end homes in London or Paris."

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"The value of most properties that have been on the market during the last 3-4 years has risen twice…Even on the re-sales market, there are some properties that were built about 5 or 6 years ago which now cost $35,000-50,000 per square meter."

"There is a great opportunity to earn on investments ranging from 30 to 70 percent per annum (depending on the project) in Moscow…That is why Moscow prime property remains very attractive for private investors," Tarakanova said.