Investing in commercial real estate. Investments in commercial real estate in russia

Today, investors are increasingly questioning the advisability of investing in residential real estate. Low rental incomes and the absence of serious prerequisites for an increase in housing prices contribute to the fact that investments in commercial real estate are becoming more relevant.

Features of the commercial real estate market

Just like residential real estate, commercial properties can generate income as a result of speculative transactions (buying and selling), or in the form of rent.

However, the fact that a commercial property is intended for business affects the number of potential tenants and their nature. There are about 4-5 times less people interested in commercial real estate than those who need housing. This is natural: entrepreneurs, and even more so medium and large, represent a relatively small stratum of society.

In addition, the commercial real estate market is more sensitive to negative factors than the housing stock. This is due to the fact that business activity is experiencing ups and downs. During periods of downturns, the demand for warehouses, offices and other objects drops sharply, along with this, the price goes down. Having a narrow focus, investments in commercial properties have good prospects only under favorable conditions.

Profitability level

In the pre-crisis time, the benefits of investing in office, warehouse and similar buildings were obvious. There were years when real estate prices doubled, and even a small property could bring its owner a solid income. Currently, income can not always be obtained, so investing should be carried out only after a careful calculation of all the details.

If the developed investment strategy is followed, the investor can receive significantly more income from a commercial building than from a residential one. This is due to the fact that the rent for a commercial object can be 1.5-2.5 times higher than the rent for residential real estate at the same initial cost of the objects. Commercial real estate lease is attractive because it is possible to conclude a contract for a long term at a high price. It is the perfect choice for those looking to earn passive income. Housing is rented expensively only with daily rent, which is fraught with numerous hassles.

The amount of income from real estate transactions is measured by the "capitalization ratio", which is defined as the ratio of the net income for the year to the initial investment amount. For residential buildings, an indicator of 3 to 7% is considered normal, for commercial - from 8 to 12%.

Objects attractive for investment

Most often, investors give preference to warehouses, office and retail premises, as well as hotels. To understand which type of real estate will be the most profitable in a particular city or area, you need:

1. analyze the supply, demand and infrastructure of the local market;
2. based on the collected data, calculate the profitability and payback periods of various types of objects;
3. collect the results obtained in a table and select the most attractive options.

As a rule, the cost of offices and trading floors pays off the fastest: it takes from 5 to 10 years. Warehouses and hotel-type premises require more time: from 7 to 11 years.

The greatest risk for investors is associated with investments in commercial buildings that are under construction. The construction of an object can be frozen or stopped altogether for reasons that cannot always be predicted. Especially often, such situations arise in crisis and post-crisis times. To play it safe, you should give preference to those objects that are on the secondary market.

Modern tendencies

The demand for commercial real estate in 2014 has undergone significant changes. Investments have more than halved, primarily due to the outflow of foreign investors. Analysts associate this with the aggravated political situation, the possible entry into force of sanctions against the Russian Federation, as well as with a slowdown in the economic growth of the Russian economy.

Nevertheless, large cities remain attractive no matter what. The demand for real estate in Moscow and St. Petersburg not only did not decrease, but also showed a slight increase. Hotel and office buildings are now considered the most attractive.

Experts are confident that the situation will return to normal next year. The crisis that has arisen endows Russian investors with some advantages: taking advantage of the market decline, one can purchase real estate at a low price, and in the future receive a high speculative income.

Conclusion

Investing in commercial properties in the long term is more profitable than investing in housing. However, the specificity of the market requires a more thorough approach to its analysis. In addition, there is some barrier for small investors due to the higher average cost of commercial properties.

Hello. In this article we will tell you about real estate investments.

Today you will learn:

• Why is it profitable to invest in real estate;
• What are the types of real estate;
• What kind of real estate can and should be invested in;
• How can you make money with a minimum investment.

Real estate investments have long been considered one of the most reliable. In the minds of people, real estate is associated with reliability and constant price increases. But is it really so? Is it profitable to invest in real estate in the realities of today's market?

Real Estate Investment Goals

Money has to make money. This most important investment principle was formally formulated at the end of the 17th century. And despite his old age, he is still relevant.

That is why any investment target - income generation.

Real estate investment also pursues this goal.

The intermediate goals (ways in which you can generate income) are as follows:

• Receiving property for renting it out;
• Resale of property;

The first of these methods is much more stable and accurate. Almost any real estate can be guaranteed to be leased, regardless of its type and quality. This is the most stable and low-yield way of investing, with the exception of a bank deposit.

Making money on the resale of real estate is a more interesting, risky and valuable way of earning money. It is quite difficult to resell real estate bought for less money, but nevertheless, regardless of the economic situation, some real estate continues to rise in price.

But most investors prefer to first lease out real estate and receive funds spent on investments, and then think about implementation.

This method allows you to maximize income, because:

An apartment in Moscow costs 10 million. Annually, its cost increases by 5% - 500 thousand rubles. The rent is 60 thousand rubles - 720 thousand rubles. Total income is 1 million 220 thousand rubles or 12% per annum.

Types of real estate investments

Real estate investments are attributed to.

There are four main types of real estate investments:

• Investments in commercial real estate;
• Investments in residential real estate;
• Investments in real estate construction;
• Investments in real estate abroad.

Each of them has its own characteristics and distinctive features that characterize not only the real estate itself, as an investment object, but also as a whole approach to investing money. Each of them differs in its own risks, which the investor assumes, strategies, and, accordingly, making a profit.

Investments in residential real estate

Investing in residential real estate means buying:

• Rooms;
• Apartments;
• Houses;
• And other living quarters.

Residential real estate is good because the threshold for entering these investments is quite small, the risks are minimal, and the investments are guaranteed to pay off. But at the same time, one cannot count on a large short-term income.

The minimum investment amount varies greatly from region to region.

Statistical fact : The price of residential real estate has fallen only 3 times in the entire recent history of Russia. In 1998, due to default, in 2008-2009 due to the global real estate crisis, and in 2015-2016 due to the Russian crisis. Over the years, since the beginning of the 90s, the average price of residential real estate has increased by 3-5% per year.

How can you make money on residential real estate? The first and main way is renting out. As a landlord, you can receive from 120 to 300 thousand rubles a year without putting any effort into it. The second way is to increase the value of real estate over time. If the apartment costs 1,000,000 rubles upon purchase, then we can safely say that in 3 years, it will already cost 1,100,000 rubles.

The return on investment is quite long. In order to fully recoup investments and reach a net profit, it will take about 8-10 years, depending on the economic situation and the region. At the same time, it will be possible to start receiving stable deductions already in the first or second month after buying a home. But when investing in housing, you will need to make minimal repairs, attract good tenants, and make sure that nothing happens to the property.

The rise in housing prices is highly dependent on the region. In actively developing regions like the Belgorod region, real estate prices are growing faster due to the constant influx of new people. You should carefully choose the region in which you want to invest.

It should be remembered that when investing in real estate, it is not worth buying a large home. Medium 1-2 room apartments, which are not as expensive as large ones, and therefore are in much greater demand, are ideal.

Investments in commercial real estate

Investing in commercial real estate is a more complex type of investment that will require good knowledge and analytical skills from the investor.

Commercial real estate, as an investment object, includes:

• The shops;
• Bars;
• Restaurants;
• Warehouses;
• Offices;
• Other premises.

Commercial real estate is used by other entrepreneurs or companies for profit. Profit also comes from the rental of premises, as well as from the possible increase in the value of commercial real estate. But if living space is steadily rising in price, then with commerce everything is not so simple.

Commercial real estate over the past few years has consistently shown negative price dynamics, while demonstrating a huge drop in demand. This, of course, is due to the crisis, but also the lack of development of small and medium-sized businesses, which primarily need to be leased.

A distinctive feature of commercial real estate is the high threshold for entering the business. Private individuals will no longer be able to just buy some office or bar and rent it out. The problem of finding clients is also very acute for entrepreneurs. After all, contracts are concluded for long-term, and a dilemma arises: either look for a more profitable offer, or work with this particular client.

The risks are also quite high. It is quite difficult for a beginner to choose the right property, and he also needs to make competent repairs, attract the right customers and conclude a contract with them. Income in commercial real estate is much higher than in residential real estate, but the payback period remains the same: 8-10 years.

Investing in construction

The most risky and most profitable type of real estate investment. It can be divided into two broad categories: investment in the usual sense, and buying a home at an early stage of construction.

In the first case, a person invests his money in construction work, and after their completion, depending on the share, he makes a profit. A familiar scheme for all investors, and nothing new in it. Profit is determined according to investments.

The second way is much more interesting. Some construction companies are selling apartments in their houses even before they are built. This helps to raise additional funds for construction, and to complete the work. Such apartments are usually ready in 1-2 years, and the price at the time of their completion exceeds the initial one by 1.5-2 times. But it should be remembered that investing in construction is a much more risky activity than buying a finished property.

You need to invest in construction wisely, studying every legal and economic aspect of the company, its reliability, market experience and reviews. With a good investment, you can both benefit from the difference between the purchase price and the sale price, as well as get a property for a lower cost, thereby reducing the acquisition costs.

When drawing up and signing a contract with a construction company, it is recommended to seek legal advice. He will be able to tell whether this company is reliable, draw up a contract competently, and if something goes wrong, then get advice.

Comparative characteristics of investment types

In order to better understand what is more profitable for you, we will present you with a comparative description of the types of investments:

As you can see, investment in commercial and residential real estate is suitable for both beginners and intermediate-experienced investors, due to its simplicity and moderate stability. But despite this, the most profitable, in terms of payback, is an investment in construction. And it is the most risky.

Residential real estate investments are suitable for everyone due to their high stability. Don't think that your investment won't pay off. They are guaranteed to generate income, regardless of the circumstances.

Pros and cons of real estate investment

Now, about each point in a little more detail:

Pros:

Stability... It's hard to argue with that. Investing in real estate is one of the most reliable and stable sources of income. Regardless of the season, economic and political situation, housing and business sites are needed by everyone and always.

Constant growth in asset value... Typical for the most part for residential real estate. Over a long distance, real estate behaves like gold - steadily and confidently increases in value.

Passive source of income... When renting out real estate, or waiting for the price to rise, an investor spends a minimum amount of effort.

Minimal risks... As follows from the second point, housing and a place for business are always needed, therefore, even in the most unfavorable times for the economy, there will be an opportunity to sell real estate or rent it out.

Minuses:

Illiquid investment object... Liquidity - the ability of an object to quickly turn into money without losing value. The low liquidity of real estate means that it is difficult to sell at its real value. Of course, you can sell an apartment / shop / any other premises very quickly by making a big discount, but this only speaks of low liquidity and, accordingly, difficulty in implementation.

Long payback... The most significant disadvantage of all. A payback period of 8-10 years, even for long-term investment, is quite a lot. Medium and small businesses pay off in 1 month to 2 years. And the financial investments are the same there.

Fixed maintenance costs... Utility bills and other expenses, if they do not lie on the shoulders of the tenant, fall on the shoulders of the investor. They significantly reduce the amount of income, forcing additional spending.

The property owner will have to pay property tax, when renting out, either income tax (if it is an organization) or (personal income tax). And after the sale of real estate, you will also need to pay taxes, which makes the amount of income less by 13%.

It is up to each investor to decide what will outweigh - stability and constancy, or low liquidity, income and payback.

We've prepared five tips for budding investors:

Advice 1. It is necessary to decide in advance on the financial possibilities and the object of investment. The subsequent strategy, investment of funds, or payback period will completely depend on this. The investor himself must understand how much money he has and what kind of real estate he can count on with it.

Choosing an investment object is the most difficult thing, because you need to understand that each type of real estate brings different income, different risks and different obligations.

Tip 2. Carefully study the real estate market and find an offer. Investments are an almost constant analysis, which is why you do not need to rush to find real estate for investment immediately after receiving money. You need to carefully study the offers that people make, see what the demand is for, and so on.

For this, local and Russian ad sites like Avito are ideal, where some people will help to understand what is being sold, and others what is rented. And based on this knowledge, it will be necessary to find the object that will not have the highest price and will be in sufficient demand.

Tip 3. If possible, do not use intermediaries. This is more about investment in residential real estate. Many people use the services of realtors when looking for an investment. This is fundamentally the wrong approach. The realtor's task is to sell, your task is to buy. And here a conflict of interest arises that should have been avoided.

A full-fledged comprehensive analysis of the real estate market will be able to give an understanding of where to look for a good apartment.

Tip 4. It is necessary to use the services of a lawyer. It is best to entrust the execution of contracts to a professional. Even a lease is best done legally. Yes, a decent part of the income is lost, but at the same time, if any check occurs, you can not be afraid of unpleasant consequences that are guaranteed to arise if the contract and taxes are not paid.

Also, a personal lawyer will be required when an agreement is concluded with a construction company. It will help you understand the trustworthiness of the company, point out controversial points and vulnerabilities in the agreement, and help protect your rights if the need arises. Investment activity always requires a good lawyer who will help you understand all the legislative intricacies.

Tip 5. We need to forget about instant profit. Investments in real estate are long-term investments, and therefore they pay off for a long time. Profit from resale can be obtained in 2-3 years, but rental income only after 6-9 years. That is why you should forget about quick and easy money.

A few words about risks

Like any investment activity, investing in real estate is fraught with considerable risks. A few words about the risks in the Russian realities.

Mortgage risk... In Russia, the crisis of 2008-2009 did not happen as badly as in the rest of the world. Real estate has fallen in value, but not as much as in Europe and America. This is due to the fact that mortgages entered the Russian market quite late, only at the beginning of the 2000s.

The fall in prices in 2015-2016, in addition to the Russian crisis, is associated with the fact that the period of payments for 10-year mortgages has approached, and the percentage of non-repayment has noticeably increased. It is not known what will happen when the 15 and 20-year terms come up, because in America a global crisis broke out by the maturity period.

Housing risk... It is not known whether the minimum prices will really pass now, or the value of residential real estate has unreasonably increased throughout the entire period of time. It is the issue with the price minimum that makes us talk about the riskiness of current investments in residential real estate.

It is necessary to closely monitor the situation, and as soon as it becomes clear whether real estate will continue to grow, or show negative dynamics, then make decisions about investing in housing.

Risk in construction... There is no need to talk much about construction. Bogus developers, double apartment sales, and many other fraudulent schemes that many people know firsthand.

Investing in houses under construction is really profitable, and it brings a lot more money, but you need to weigh the risks, carefully study the companies and only after that make decisions about investing in construction.

How to invest with minimal funds

Investing in real estate is still much more expensive than other methods.

If there is not enough money, then you can use one of the following methods:

Raising money... The most popular way to raise funds for the purchase of real estate is a mortgage. A loan secured by real estate. In the Russian sense, this is a loan for real estate, secured by the same real estate.

Most banks are happy to provide mortgages. This will require a stable source of income, good credit history, and a set of documents that differs from bank to bank.

Depending on the banks, term, reliability and financial condition of the borrower, the interest will vary. Basically, mortgages provide 11-17% per annum, and 5-7% - if there is a loan in foreign currency.

This method is good because the monthly mortgage payments can be paid with the money received from the rent. With a competent purchase and a profitable lease, you can get a home for free, the loan for which will be paid by the tenant.

Attracting co-investors... In Russia, the idea of ​​joint investment is just developing, which is why there is no need to talk seriously about this method yet.

Very rarely, investors have the opportunity to really find partners who will be ready to claim income from real estate on equal shares (or depending on the contribution), without interfering with making a profit. At the same time, the opportunity to attract friends or relatives to an investment project will make investments less and noticeably more profitable.

Joining the investor club... There are many communities where investors are looking for like-minded people who can help each other not only with advice, but also financially. In such clubs there are many people who, on terms of investment, can invest in your project, and so you can receive independent income and provide profit to partners.

This is also a fairly new idea for Russia. It is about collective financing. You can launch a project that will attract investment so that you can invest in real estate.

The investment project will have to work as a whole joint stock company - people will buy shares in this project and rely on profit. Suitable for buying and renting commercial real estate, and subsequent implementation.

It is quite difficult to independently raise funds for the purchase of real estate. That is why it is recommended for beginners to attract partners by any available means. More experienced investors will be able not only to invest, but also to direct them in the right direction, helping and teaching at the beginning. This is a much more valuable experience, even more important than making a profit.

Robert Kiyosaki - one of the world's most famous businessmen and self-development coaches, has written a book that every real estate investor must read. It is called “Real Estate Investments”.

It provides a detailed strategy for those who want to invest in real estate and get 5-6 properties by the age of 40, and have a stable passive income practically doing nothing. The book is full of interesting things and pitfalls. It will be useful to everyone, even though it is more adapted to Western and Eastern realities than to Russian and CIS countries.

Summing up the conclusion : Investing in real estate is one of the most discussed and popular investment methods among ordinary people. It is characterized by minimal investor experience requirements, but extremely picky about the wallet. The return on investment in real estate is 2-9 years, depending on the chosen method of income.

In conditions when the economic situation in the country is unstable, monetary assets are depreciating, investing in real estate still remains one of the most reliable and safe types of investments, which not only preserves capital, but also brings a constant income. The cost of real estate is slightly subject to changes than the price of shares, and makes a profit not only from the increase in the initial cost, but also from its lease.

Over the past decades, liquid real estate has become an integral part of the investment market. Having free financial assets, their owner is interested in a profitable monetary contribution. It just so happened that today the most tempting and more profitable way of investing is investment in real estate. This is the most promising and cost-effective way of investing funds, regardless of the economic or political situation.

Today, Russians are more interested in investing free assets in real estate in order to generate income than in purchasing real estate for housing. Currently, the real estate market is one of the instruments for profitable capital investment, with the aim of increasing and increasing its value.

However, it is worth remembering that any real estate transaction is an element of the investment process, which implies the timing of the investment, the size and form of investment. Of course, such transactions involve a risk factor. Any real estate in cities will always be of increased financial interest, since business is developing more actively in megalopolises. That is why it is more profitable to purchase commercial premises, apartments or houses in big cities than to become the happy owner of a luxurious object somewhere in the outback.

Commercial real estate.

Investing money in commercial real estate in order to generate permanent income is preferable in objects intended for trade, business or entertainment in megacities. After all, the well-being of the people is growing every year, therefore, they spend more money on shopping and entertainment. Therefore, experienced investors, having free capital or ready to get a loan, prefer to invest in various entertainment centers or shopping malls. Such real estate will start to generate substantial profits pretty quickly.

Residential Properties.

Investments in real estate for housing are also of interest. After all, the cost of housing fell only in connection with the default of 1998 and the global financial crisis in 2009, although this decline did not last long and after a few years the cost of residential real estate returned to the pre-crisis level. Prices have risen in recent years by 3 to 5 percent per year. Speaking of residential real estate, it should be noted that one- or two-room apartments are better sold and rented out, and operating with large apartments is not very profitable.

Land.

Prior to the 2009 crisis, land investment was a profitable investment of funds. When buying land for investment and speculative purposes, you need to remember that most developers get rid of illiquid plots first of all. When investing in land plots, you need to determine their demand. The land should be in demand on the market and be sold in a short time. The smallest cost changes are subject to land plots intended for individual housing or suburban construction.

The investment attractiveness of real estate as an object for capital investment in order to generate income requires a constant forecast of its development on the market.

Since the beginning of 2014. there has been a significant increase in private investment in real estate. The political and economic situation in Russia has forced citizens who want to at least keep their savings, transfer them from bank deposits to apartments in the primary housing market and retail space (street retail). Everything returns to normal.

Photo: Depositphotos / Deklofenak

It seems that the old rule of the Russian lay investor has worked: "In any incomprehensible situation, invest in real estate." As the head of the department of new buildings of the GC "MIC" Alexander Engel says: "For the majority of our citizens, investing money in square meters is a more understandable and less risky business compared to the securities market, bank deposits and the precious metals market." And the reference point, as the head of the analytical and consulting center Est-a-Tet Vladimir Bogdanyuk, is the previous crises: real estate prices then quickly recovered, and their growth continued at least within inflation. Therefore, the share of investment apartments in housing projects in the primary market has grown. According to Denis Bobkov, head of the OPIN analytical center, the share of investment purchases in the spring amounted to a record 30% against the traditional 10%.

But to be a successful investor, you need to know the rules of the market game. Besides, when sitting down at the card table, it is good to have more chips. The higher the cost of admission to the private investor club (investment volume), the more options available. And the efficiency of investments depends on this.

Private Investors Club

Detailed socio-demographic characteristics of private investors are not that important. In short, these are citizens investing in real estate from 2 million to 50 million rubles. "These are people with prosperity who have housing and spare funds and who invest in real estate with the expectation of making money on resale or receiving a stable rental income. Most often they have the entire amount necessary for the purchase, less often they get the missing funds through a mortgage", - draws a portrait of a private investor Denis Bobkov. And such among investors operating in the real estate market - 80%.

The most understandable and accessible for them is the mass housing market. "The cost per square meter here is not as high as, for example, in the segment of commercial real estate or residential properties of elite and business class. At the same time, there is always a demand for such a product," says Alexander Engel.

If we talk about commercial real estate, the street retail segment has been the leader in private investment for several years now. They also invest in small office blocks. Since in recent years, prices for commercial real estate have been growing at the inflation rate, investors, presumably, are counting on rental income rather than speculative sales. According to Denis Sokolov, head of the research department at Cushman & Wakefield, in the first half of the year, 10-15% of all investments of private investors went to the purchase of small offices or blocks in office buildings in Moscow, the rest went to street retail.

Investment leader

After the 2008 crisis. and high-profile stories with defrauded equity holders, real estate market players were wary of buying an apartment during the construction phase. But now most of all investors graze in the market of new buildings. “Serious work has been done at the legislative level,” explains Alexander Engel. “Today, most developers work within the framework of Federal Law No. 214, which protects the interests of equity holders as much as possible.” The main growth in the value of real estate in the primary market is due to an increase in the stage of construction readiness of the object; the overall market growth, as a rule, does not exceed the inflation rate.

The highest demand is observed for new buildings of economy and comfort class in the old borders of Moscow, and here is the fastest turnover of money. According to the general director of Metrium Group Maria Litinetskaya, an investor who buys such apartments can count on a standard profitability for new buildings in the capital: for the entire construction period (about 1.5-2 years), the cost per square meter increases by an average of 30%.

"The most advantageous offer is presented at the initial stage of construction, when the minimum prices are set in the project. High purchase risks at the initial stage of construction are paid off by the maximum profitability, which in some cases can reach 50%," says Vladimir Bogdanyuk.

According to him, most investors in the primary market sell their properties before obtaining ownership rights, when the price has exhausted all opportunities for growth and the project will soon be handed over to the state commission in order to avoid additional costs for paying taxes.

Experts note the interest in the new but already successful apartment format in Moscow. On average, prices per square meter in apartments are 15-20% lower than in apartments, so prices rise significantly during construction.

I must say that renting an apartment is an unprofitable business model for a private investor. According to the company "Miel", the average profitability of an apartment in a new building of economy and comfort class on a rental scheme today is 4-7% per annum with an average payback period of 18-22 years. The profitability of the apartments is higher: 9-12% with a payback period of 11-13 years. But this formula does not take into account possible housing downtime and utility bills. The profitability of housing can be increased by registering individual entrepreneurship and switching to a simplified taxation system (income tax for individuals when renting an apartment is 13%, and for individual entrepreneurs - 6%).

Other

In 2013. a new niche has formed on the market: private investors with amounts of $ 1 million to $ 10 million began to acquire Moscow offices in blocks. Prior to this, retail outlets were the traditional sphere of investment in commercial real estate for private traders. This has nothing to do with the current political turbulence, just a way of putting eggs in different baskets.

According to Alexander Bolotov, General Director of Miel - Commercial Real Estate, the most attractive prospects for investing in commercial real estate open up from the amount of 800 thousand dollars. But the threshold for entering this market is lower: 250-350 thousand dollars. For this money it is possible to purchase either a small-format office block in a business center, or a retail space.

"Street retail on the ground floor of the building brings a stable income - 11-12% per annum, but this applies only to the most liquid properties located on the main shopping streets of the center or in passable places in residential areas," says Bolotov. - The profitability of the office segment is lower - 8-9% per annum But the choice of small premises in high-quality business centers today, in contrast to the situation two or three years ago, is much wider.Within $ 380 thousand, you can buy an office space of 100 sq. M in a business center with a good location. In the retail segment for the same amount you can buy only premises with an area of ​​50 sq. m. "

Comparison of investment instruments

The Russian economy has come a long way since recovering from the global financial crisis of 2008-2009. Renaissance Capital examined how the main investment instruments available to an ordinary citizen of our country behaved in the post-crisis period.

Know if the buy-in

The most important and painful risk of buying a primary home for any purpose, as follows from a survey of experts conducted by the editorial board of RBC-Real Estate, is a long-term construction that turns into unfinished construction. There is also a risk of not recouping your investment due to the lack of price increases for the project, difficulties in finding buyers and the associated need to provide a discount to the object.

But all these risks can be minimized or even eliminated. First, you need to carefully check all the title documentation for the project, the financial condition of the developer company and the portfolio of projects it has implemented. Alena Deryabina from Don-Stroy Invest also advises paying attention to the behavior of the developer: cash flow to continue construction. In such a situation, there is really a great risk that, having bought an apartment at the start, you will have to wait indefinitely for its readiness. "

Secondly, when choosing a project for investment, be guided not only by the most affordable price, but also to take into account the entire set of qualitative characteristics of the project, as well as the competitive environment, in order to correctly assess its liquidity and prospects for further resale. The new building should be located in areas of Moscow demanded by buyers or in cities of the near Moscow region; good transport accessibility of the object is also desirable. For investment purposes, it is best to purchase one-room apartments and studio apartments, which are always in demand.

According to Anton Gololobov, Marketing Director of Villagio Estate, a good profitability (up to 10-12% per annum) can be brought about by buying real estate in a low-rise complex outside the Moscow Ring Road. "A couple of years ago, one investor bought several townhouses in our premium village at the start of the project. Now that the houses have been commissioned, their value has increased by 25%. The investor plans to invest in finishing the townhouses, which will add another 15-20% to their price." ...

The investment "window" is closing

Now the number of investment sales has decreased compared to the first quarter of the year. But people who make money on the growth of the cost of the "square" have not left the market. The crisis state of the economy pushes them to actively investing free funds in real estate. According to Alexandra Biryukova, head of the analytical center of the Domus Finance company, investment deals should now be aimed at preserving savings, and not at their significant increase. All the same, it will not work out much. The expert calls the acquisition of the "right object" an effective private investment, followed by a significant increase in prices for it for the selected period and the successful sale of the object. Of course, if the investor's goal is to sell the object as quickly as possible, then a temporary drop in demand, which may arise in the wake of the crisis, will make it difficult to achieve this goal, but is unlikely to affect the price of the object.

It is still difficult to predict how much and when the market will drop - the uncertainty on it is too great. But everyone is confident that demand and prices for housing and commercial real estate will begin to fall. According to experts' forecasts, the investment "window" is closing and the pre-crisis rescue of private capital through real estate may soon stop. However, one of the lessons of the 2008 crisis. is that the crisis also opens up new opportunities. Then, amid the rapid economic recovery, many have succeeded by buying real estate and other assets in a growing market. Now it would be good to understand where its "bottom" is. As investors say: "Cash is king!"

Sergey Velesevich

• What is commercial real estate
• Types of commercial sites
• Hotels, apartments, cafes, restaurants
• Ways to make money on commercial real estate

Difficulties when investing in objects

According to experts, today in large cities with a high demand for commercial real estate, the cost of objects in 60-70% of cases is overestimated. The fact is that no one is in a hurry to part with profitable objects, and therefore one should not be surprised even at the fantastic prices for commercial objects, because sometimes the owners deliberately set an exorbitant cost, because they do not want to sell the object at all. Typically, inflated prices are found in cases where the demand for the site exceeds the supply in the market. This means that in this area, for square meters, for example, office real estate, the demand is so high that there is a queue for real estate. This only suggests that commercial properties are one of the most profitable assets on the market.

Undoubtedly, there are many types of real estate and investment in housing is more popular today, because such investment is simpler and more understandable. Investments in commercial properties require knowledge of the market, trends, demand, but at the same time they can bring in much more money than apartments. Today you can invest in commercial real estate of various categories - these are warehouse, office, retail and many other sites. At the same time, you can invest in the corresponding objects in different ways - buy out a ready-made site, build a new one or invest in a ready-made business.