Moscow's real estate counted among some of the highest rates in the world in 2018, according to The Moscow Times. The recognition is based on a report done by the global real estate firm CBRE Group. According to the report, the 12.5 million-strong city has actually had some of its cost of living decline to affordable rates this year, and it placed outside of the top 50 most expensive cities in the world this year.
Moscow's 8.9 percent growth rate, perhaps received during the time people flocked to it with the cost of living went down, placed it sixth in the world list of CBRE on Global Living. Madrid and Paris stayed ahead of the Russian city, as the Spanish and French cities had 10.2 and 9.1 percent, respectively.
It's not surprising that demand would've risen in the Russian city, even as inflation helped to push Moscow up against the rankings. Maria Litinetskaya of CBRE's partner firm Metrium Group said that this was only a few of the reasons behind the climb of Moscow up on the rankings ladder. Litinetskaya is one of the founders of the Metrium Group.
Moscow, however, has been receiving a lot of heat elsewhere in the world. New York Times reported that there are just a few residents in Russia, particularly in Moscow, which are having a hard time selling back their properties into the real estate market. Surprisingly, these people are required to have a 'certificate of sanity' from a psychologist before they can sell their unit.
It's just what the Russian government could do on such short notice. The real estate market in the country is currently under attack from 'black realtors,' agents who are looking to gain money from flooding the property market with illegal deals. Russian media used the term for these fake real estate agents, who are out to make a quick buck in the $29 billion-worth Russian market.
Russians are on the lookout for these deals, even as a majority of them are looking for properties in the cities closer to their work. Legal uncertainties aren't helping their case, though, even as they face danger from these real estate agents. The International Monetary Fund has also been pointing out that there need to be proper processes to root these agents out.
The rise of the Moscow market is a good thing, but when coupled with these 'black realtors,' then the efforts to make Moscow one of the most sought-after destinations for investors in the world may not succeed. The Russian government should look to measures to control the proliferation of these 'black realtors' plying their trade even as they look to build upon the successes of Moscow.
