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How Busy are Russian Realtors during Pandemic
November 02, 2021
Here's my short translation of an online interview with the head of a successful Russian real estate agency with offices in Russia and Spain. They sell to Russian buyers properties mostly in Spain, and some properties in Cyprus, France, Mexico and Turkey, too.
Q. How the real estate market has changed in these pandemic times?
A. Lots of changes. The Spanish economy suffers. The authorities issue some support for citizens, but it's often not enough, and paying taxes is still a responsibility.
Nevertheless, we don't see any sharp falling of the real estate prices. International investors consider the crisis as an opportunity to purchase commercial properties (in the field of tourism, for example) at attractive prices, and it increases the flow of the investment capital into the country.
At the same time new developments can't sell for less as their construction costs still have to be justified.
Strong quarantine measures have moved many companies to work online. In the past, banks required a person to be present to open a bank account, now they allow it by a power-of-attorney.
Q. How do these changes influence your agency operations?
A. During the pandemic we haven't stopped working, not for one day. We perform online showings and online closings, took part in the first online Moscow exhibition of international real estate. Also we prepare new offers of new attractive properties for our Russian buyers.
Actually we perform any and all online operations with real estate deals and getting the right-of-living in Spain for Russian real estate buyers (with the help of cooperating lawyers and other professionals if required - we have 150 of them on our list).
Often we help the Russian owners of properties in Spain, who can't come to Spain nowadays because of covid restrictions, with renting out their Spanish properties, getting licenses and paying taxes.
Also we have started a big advertising campaign in Russia which brings us new clients.
Q. What's the future of the real estate market in Spain in your opinion?
A. Many experts agree that the real estate prices' drop in 2020 is from 6% to 9%. The trend continues this year. I guess that some-in-high-demand properties and new constructions won't become much cheaper, but the second-market properties' prices will drop by 15%.
Q. When will the real estate market in Spain come back to the pre-pandemic situation?
A. Analytics of the big Spanish banks tell us that it might happen in 2024. As for one, I think that many various factors and events in the US, Europe, Russia and China would have various effects on various sectors of the world's economy and real estate industry. Let's see and hope.
To your best business success,
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