Discussion on Preferences for Foreigners Purchasing Real Estate in Russia

The Russian government has begun discussions on the possibility of granting preferences to foreign citizens when purchasing real estate. Deputy Minister of Construction Nikita Stasishin reported this, noting that such measures might be of interest to entrepreneurs from neighboring countries such as Kazakhstan, Uzbekistan, and Tajikistan.

Julia Pletneva, Vice President of the Russian Union of Real Estate Market Participants, emphasized that Russia already has a "golden visa" mechanism in place, which allows foreigners to obtain a residence permit in a simplified manner when purchasing real estate with a certain cadastral value. However, there are additional requirements, such as the need for continuous ownership of the property for at least a year before applying for residency.

According to Pletneva, possible innovations could include reducing the timeframes or simplifying the conditions for obtaining Russian citizenship, as well as easing current criteria for simplified residency acquisition. This could involve lowering the cadastral value threshold or extending the program to the secondary housing market.

Vladimir Kaplinsky, Vice President of the Russian Guild of Realtors, noted that the share of foreign buyers in the Russian housing market remains insignificant, and even new privileges are unlikely to significantly change the situation. However, if the measures provide a clear path to residency and citizenship, an increase in demand of 7-12% can be expected in the premium segment of Moscow and key regional centers.