Support The Moscow Times!

Sales of Elite Real Estate Boom in Moscow After Year of Stagnation

The experts attribute the growth in sales to the discounts for new housing being offered by developers. torange.us

After a slow year on Russia's housing market caused by the country's economic crisis, Moscow is starting to see a growth in sales of elite property, the Kommersant newspaper reported Friday, citing a recent report.

In November, the demand for elite real estate in Moscow rose by 25 percent compared to the same period last year and by 50 percent compared to October, according to the report by elite real estate consultancy Kalinka Group, Kommersant reported.

The experts attribute the growth in sales to the discounts for new housing being offered by developers and the amendments to the Tax Code — which increase the period of time after which the owner can sell the purchased property without having to pay taxes from three to five years.

The changes will come into force on Jan. 1, 2016.

This means that those who purchase the real estate before the end of the year can sell the property in 2018 without paying any taxes, or else will have to pay 13 percent tax on the cost of property or postpone its sale until 2021, Yekaterina Rumyantseva, chairperson of Kalinka Group's board of directors, told the newspaper.

No more than 10 percent of potential investors are ready to wait until 2021, Rumyantseva added.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more