The Moscow International Property Show, the largest international exhibition of foreign real estate in Eastern Europe, ran in the Russian capital for two days, on 16 and 17 April. Along with traditional offers like beach apartments in Greece or Cyprus, this time investors showed interest in the multifunctional residential complexes in Minsk developed by Dana Holdings. There are some reasons for that.
The new complexes that the developer is building in the Belarusian capital are well known not only in the country, but also abroad. Mayak Minska, Chelyuskintsev Park, Minsk World, and the Capital Palace Business Center have been showcased at various international exhibition venues, including in the UAE, France, Lithuania and Ukraine. It is no coincidence that the authoritative jury of the European Property Award recognized the Minsk World project, which includes the Minsk International Financial Center, as Europe's largest multifunctional complex.
But it is Russian investors that show a special interest in Minsk's new property. The reasons are many: the closeness of the two countries that develop cooperation within the Union State, the commonality of economic and cultural interests, traditionally good-neighborly relations between our peoples. Russians like Belarus. Many even want to buy real estate here.
Mutual economic interests mean mutual benefits. On the sidelines of the exhibition Dana Holdings signed agreements with a number of Russia's major real estate agencies to officially allow them to present its new development projects, above all, the Minsk World complex, on the Russian market.
For example, among those who showed an interest in the complex was Etazhi Agency, Russia's largest real estate agency. The company's deputy director general Sergei Zaitsev flew to Moscow from Tyumen where the company is headquartered. Once a regional company it expanded to become the leader of the entire real estate market of Russia. By the way, in early May, the international office of Etazhi Agency will move to the capital city, which will make it more convenient to work with customers.
“We run offices all over the Russian Federation. Our customers have recently shown their interest in real estate not only in Russia, but also abroad. We are receiving a lot of applications for overseas property. We have started arranging deals in Turkey, now the first deal in the United Arab Emirates is ready. Along with that, we have seen a substantial demand for real estate located in Belarus. We are going to respond to this demand in cooperation with Dana Holdings,” Sergei Zaitsev said.
Minsk, according to the agency's representative, is a large and well-developed city. Buyers from Russia usually name two main reasons for buying property in the Belarusian capital city.
First, they have been to Minsk and know this city. Therefore, they want to buy an apartment here. Maybe someone wants to return to their homeland or move closer to relatives, in other words, they want to relocate to Minsk. The second reason is investment. Investors buy real estate from a reliable developer. The location itself is not so important for them, they want to have a guaranteed return on investment,” Sergei Zaitsev said.
Etazhi Agency and Dana Holdings signed a cooperation agreement and embarked on work.
“We are launching an advertising campaign all over Russia. We want to reach out to people who are interested in such deals,” Sergei Zaitsev stressed.
Point Estate Agency, one of Russia's major players on the real estate market, also signed an agreement with Dana Holdings.
“The interest in Dana Holdings is quite understandable - Russians seek to buy and rent out foreign real estate, primarily in Belarus. The Minsk World complex is being built on the site of an old airport in the very center of Minsk, and it is Europe's largest project. Therefore, the interest in it on the part of Russian buyers is quite understandable,” sales director of the company Roman Amelin said.
There is one more important factor - the very location of Minsk.
“It is appealing that the complex, to a certain extent, is like a bridge, a link between Russia and Europe. Of course, this also explains the interest in such real estate,” Roman Amelin said.
The FS-Property agency will also sell residential and commercial real estate in Minsk. Director General of the real estate company Evgeny Yur is convinced that the Belarusian real estate market is of interest to customers.
The country has been successfully developing, the laws are observed, and a high level of security, including safety of life, is ensured. That is why Minsk is certainly interesting for investors. It is also so because pricing in Minsk is much more interesting than in Moscow - prices are significantly lower. In addition, Minsk has several advantages over Moscow. This is a real European city; it is beautiful, comfortable, and cozy. There are no traffic jams here like in Moscow. Although the city is big with a population of almost 2 million people, thanks to good transport links, you can get to any point of it very quickly,” the head of the company says.
According to him, there is a demand for Belarusian real estate in Russia, but it must be built up through joint efforts with partners. A perfect example of competitive advantage is the 100-month installment plan. It is a financial instrument offered by the developer.
“The installment plan makes investments in new housing in Minsk attractive and promising. There is no such thing in Moscow, and that is why we were interested in this option, which is very different from the offers that exist in our market,” stressed Evgeny Yur.
Founder and General Director of Avangard Nedvizhimost Arman Barekyan, who also signed an agreement with Dana Holdings, admitted that cooperation with the Belarusian developer is a very personal story for him. Arman lived in Minsk for over 10 years since his student days and has maintained a very reverent attitude to the Republic of Belarus and its people.
“We have decided to work on the Belarusian market. This cooperation undoubtedly has great prospects. Firstly, the complexes, which Dana Holdings build, attract with their beauty and modernity. Secondly, the price conditions are interesting for Russians. Thirdly, the investment appeal of this property is high. With such a location, both residential and commercial premises are easy to lease, and the payback period of such projects is quite fast. Profitability of such real estate is always higher than that of foreign currency deposits. We will take every effort to attract many clients in Russia to this offer,” Arman Barekyan said.
Dana Holdings representatives were happy to meet their clients who have already taken advantage of the opportunity to buy real estate in Belarus. For example, Anna Khabarova from Moscow is a trusted expert in this matter!
“Dana Holdings and I have successfully cooperated for a long time. Five years ago, I got an opportunity to buy an apartment in Minsk, in the Mayak Minska complex that was built by this company. I was surprised by the quality of the construction and the well-developed infrastructure. I love Picasso Boulevard, the Dana Dance fountain, and the proximity of a huge shopping mall that offers the entire range of the necessary services,” Anna Khabarova said.
Anna Khabarova rents the apartment, but sometimes her retired parents stay there during their visits to Minsk, as they like the Belarusian capital. The pace of life here is calmer and slower than in Moscow, which is more pleasant! So she views her real estate in Mayak Minska as a very good investment.
“When I look at the complexes that are currently under construction, I start wanting more. I would like to buy another apartment here. When the pandemic abates, I might make up my mind,” she said, smiling.
Another example is Sergei Vysotsky, a businessman from Moscow, who has already bought three apartments in Minsk World and commercial premises for a store of Arabic perfume in Mayak Minska. And he has not regretted it.
“Thanks to Belarus' location in the center of Europe, there are great prospects for doing business here. Investments in real estate are the most profitable nowadays. Any currency can lose value, while real estate cannot. Prices for real estate in Moscow have skyrocketed manifold. The same tendency can be observed in Belarus. We, businessmen, like to assess our prospects, and I believe that these purchases will be worthwhile,” Sergei Vysotsky believes.
The businessman said he had considered a great deal of proposals concerning Belarusian real estate with partners.
“We've looked at every nook and cranny in Minsk. We chose Minsk World because we like its value for money. Construction proceeds very fast and it is quite possible we will soon expand our real estate in Belarus,” the entrepreneur noted.
The strong interest in projects in the Belarusian capital city on the part of the Russian side was only to be expected but the successful participation in the prestigious Moscow expo is still impressive, Chairman of the Board of Directors of Dana Holdings Vibor Mulic admitted.
“Our company regularly participates in major international real estate expos and presents the complexes being built in Minsk. The Moscow International Property Show is a good opportunity to demonstrate the appeal of the Minsk World and Park Chelyuskintsev complexes on the market of Russia and other Eurasian Economic Union member states. We are satisfied we've managed to sign agreements on cooperation with a number of the largest real estate agencies,” the representative of the largest real estate developer said.
Interest in external investments is understandable.
“We invest heavily in construction. Apartments in, for instance, Park Chelyuskintsev are sold in the houses that have already been finished. Hundreds of millions of U.S. dollars has been invested in Minsk World. This is why we are interested in foreign investments. They don't have to be massive investments from large companies. If a foreigner buys an apartment in the Belarusian capital city, it also represents an investment in the economy of our country. This money will work in Belarus,” Vibor Mulic is convinced.
Moreover, the most favorable investment period is starting right now.
“The world economy will grow in the post-COVID period. The early growth phase with its maximum profits is the best time to make an investment. Belarus did not halt its economy and it was the right decision. Jobs and the industrial potential were preserved. Now our multifunctional complexes represent profitable investments on a growing market,” Vibor Mulic said while talking about the agreements that had been signed.
The Moscow International Property Show means two days full of noise, tensions, and brightness. But the effect from participation in such forums can last for years. Every day Minsk becomes more and more appealing for investors. A new waymark for the Russian market has already been set – welcome to Minsk World!
