1. Russians, purchasing second homes abroad: budgets, motivation, preferences. Trends for 2012 63 FFIABCI Congress St. Petersburg, 12-16 May 2012 Tatiana Rodionova – President for FIABCI-Russia Tatiana Rodionova – past president of FIABCI-Russia

2. Residential Property market in Russia: Overview 2008-2009 Tatiana Rodionova, President of FIABCI-Russia

3. www.prian.ru www.prian.eu  PRIAN.RU – the leading Russian Web- site, devoted to Overseas properties, is searching Russian customers market since 2007  The absolute figures can be different, as compared to other sources, but the tendencies and trends show the picture in dynamic very well PRIAN.RU – Недвижимость за рубежом 63 World FIABCI Congress St. Petersburg

4. Questions: What had happened with budgets after crisis? What motivates Russians to buy properties abroad? What kind of properties are preferable? What are the main popular destinations? FIABCI 63 World Congress St. Petersburg

5. How much are you ready to invest in purchasing property abroad FIABCI 63 World Congress St. Petersburg

6. Residential Property market in Russia: Overview 2008-2009 Prices in rubles Prices in US dollars

7. Prices in rubles Prices in US dollars Residential Property market in Russia: Overview 2008-2009

8. You are looking for the opportunity to buy property abroad with the purpose FIABCI 63 World Congress St. Petersburg

9. You are looking for the opportunity to buy property abroad with the purpose FIABCI 63 World Congress St. Petersburg

12. Significant factors for Russian buyers (range) Easy transportation from Russia (availability) Proximity to the sea (lake), resort area Economical and political stability in country Comparably low price per m2 Well-developed Infrastructure of the area Easy application of visa for the property owners Interior, furniture, equipment, swimming- pool, Possibility to get mortgage, while purchasing Profitability of investment: Rental yield Profitability of investment: Rental yield Tatiana Rodionova, President of FIABCI-Russia

14. Popularity of properties for Russian potential customers in April, 2012 (top 15) FIABCI 63 World Congress St. Petersburg

15. How do Russians prefer to purchase? What is the specific of Russian customers? How to attract them? FIABCI 63 World Congress St. Petersburg

16. Who are you going to ask for assistance in purchasing property abroad FIABCI 63 World Congress St. Petersburg

17. Investment for today: Long-term investment instead of short-term Protection of money instead of high profit Importance of liquidity factor rises Availability of mortgages is more important, as like as: Economic stability & legislative protection of investment FIABCI 63 World Congress St. Petersburg

18. But there is some difference between Premium & Economy segment buyer. For Economy segment buyer is also important: Comparably low price of the offer inside region Low costs for exploitation & taxes Cheap life in the country and connection with Russia Visa preferences for senior ages FIABCI 63 World Congress St. Petersburg

19. Specific of the Russian buyers of second homes: Polarity of opportunities - 2 different groups, looking for: -economy segment (from 30 to 150 thousands Euro) Bulgaria, Spain, Montenegro, Turkey, Czech Republic, Baltic countries, etc Bulgaria, Spain, Montenegro, Turkey, Czech Republic, Baltic countries, etc - premium segment (from 1 to 5 million Euro) France, Italy, Switzerland, USA Tatiana Rodionova – FIABCI-Russia Past President

20. All are interested in: Friendly atmosphere & political stability Easy visa regime and preferences to the home-owners All have traditional inert choice of preferable places (it is hard to promote new regions of the country) The price is to be discussible (negotiable) Tatiana Rodionova – FIABCI-Russia President

21. But there is some difference between Premium & Economy segment buyer. For Economy segment buyer is also important: Comparably low price of the offer inside region Low costs for exploitation & taxes Cheap life in the country and connection with Russia Visa preferences for senior ages Tatiana Rodionova – FIABCI-Russia President

22. For Premium segment buyer is important: Only very prestigious places (plus “first line”) Some of them do not want publicity and Russians around, but majority prefer places with Russian & International “high society” Unique properties with own history or design (highest level) Quality service and all the amenities The ability to conduct business & obtain the residence permit Tatiana Rodionova – FIABCI-Russia President

23. Investment for today: Long-term investment instead of short-term Protection of money instead of high profit Importance of liquidity factor rises Availability of mortgages is more important, as like as: Economic stability & legislative protection of investment So, according to these factors most popular countries are: Germany, Britain, France, USA, etc. Budget: 150-300.000 Euros Tatiana Rodionova – FIABCI-Russia President

24. Important factors: Political and economic stability of the country; Level of legislative protection of investors; Availability of projects with a guaranteed rental income; The liquidity of real estate; The availability of mortgages for Russians. Tatiana Rodionova – FIABCI-Russia President

25. Financing: before the crisis, almost 90% of Russian buyers have invested their own funds (cash), and only 10% used bank financing. Now the situation has changed: for example, to buy property in UK 30-40% of Russians use mortgage, property in in Spain - over 65%, in France –approx. 50%, in Spain - over 65%, in France –approx. 50%, Tatiana Rodionova – FIABI-Russia President

26. Migration purposes: The possibility of obtaining a residence permit or visa Facilitation IS VERY IMPORTANT for today for all categories of Russian buyers; But let us hope, that political stability and growing prosperity of Russia in future will protect the most popular countries from 125 millions of Russians immigrants! Tatiana Rodionova – FIABI-Russia President

27. All of them prefer to buy second homes: in the countries with good climate, better on the sea coast in places with highly developed infrastructure (no any offers in “beautiful peaceful village”!) Good accessibility (better direct transportation from Russia) Already constructed & equipped homes or apartments (no land plots, projects under first stage of construction, or ones, which need serious reconstruction) Tatiana Rodionova – FIABCI-Russia President

28. Residential Property market in Russia: Overview 2008-2009 Tatiana Rodionova, President of FIABCI-Russia March, 1992: free market of Real Estate as a private property appeared in Russia, when the Privatization Law has been accepted. According to that law every Russian tenant got the right to privatize his rented from the State residential real estate – free of charge. The right to privatize real estate may be used by a Russian citizen of legal age (after 18) only once in a lifetime – and only till 03.2010 1992 – hyperinflation and economic crisis made hard currency extremely expensive and purchasing capacity extremely low and so since people got their real estate free of charge – the property appeared to be extremely unvalued. The price of 1 square meter of residential real estate in the beginning of 1992 found to be only $100-200 in main cities of Russia

29. Tatiana Rodionova, Past President of FIABCI-Russia

31. Thank you for your attention, welcome with any questions! Tatiana Rodionova realty@mailbn.com Skype: planet_property +7 921 992 92 88

32. FIABCI 63 World Congress St. Petersburg