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Saint Petersburg is quite attractive for real estate investment. With growing interest in commerce and tourism, a lack of upscale properties and hotel space, many opportunities abound.

The city is currently experiencing a renaissance since its 300th anniversary celebration in 2003. Millions of dollars of investment have been made by the Russian government in the modernization and upkeep of President Putin's home town. Saint Petersburg has also experienced a surge in tourism and foreign investment since the beginning of 2003. Tourism for 2004 was up over 20% compared to the same period 1 year earlier. Valentina Matvienko, the city's governor is also working to make the city more attractive for foreign investment - initiating programs to cut away the red tape that has slowed business development in the past. She has also promised to facilitate the transfer of a number of government ministries from Moscow to St. Petersburg. All of these factors are contributing to the interest in St. Petersburg as a real estate investment.

The market has increased dramatically between 2002 and 2004 (nearly 70%). Currently, the average price of real estate is relatively stable with moderate increases seen in the city's historical center. Prices for Saint Petersburg property in outlying regions have dropped slightly since June 2004. Analysts predict a steady increase in central property over the long term. To learn more about the current state of the market, please refer to our statistics section.

Many foreign companies and their Western employees have started to purchase the apartments in which they live rather than renting. With return on investment typically lower than 4 years, this variation can be quite attractive in terms of current cost savings and future property appreciation. The process of receiving a mortgage from both Russian and foreign banks operating in Russia is also becoming easier. City Realty can help you with this option from start to finish by assisting with selection, purchase, renovation and property management for St Petersburg apartments. To learn more, please contact us, or make property inquiry.

St. Petersburg is full of majestic buildings located in the city center that are still held by communal tenants but have incredible potential for rental purposes when they have been fully renovated. These are typically pre-Revolutionary buildings with grand entrances and high ceilings located in prime locations. The long term and short term residential market for rentals in Saint Petersburg is currently doing very well. There is still a great need of Western renovated apartments in Saint Petersburg for both foreign business people and tourists. Typical yearly returns on this type of investment are between 15% and 25%. Many large, communal apartments are currently being converted into small hotels as well. City Realty can help with the purchase of such properties, their remodeling and their rental or exploitation. To learn more, please contact us, or make property inquiry.

There is also an opportunity to sell Saint Petersburg real estate at a premium over the original purchase price by either settling the original legal problems associated with the property and/or by renovating the property. This is especially true for many of the still communal apartments located in prime, central locations. The specialists at City Realty have experience with these types of transactions and can help make your investment a success by helping with the project management from start to finish. To learn more, please contact us, or make property inquiry.

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