Most of Russians, at least those ones that I (Sergey Baklykov) personally know, when invest in to the real estate, prefer to invest in flats in multi-flat residental buildings.
The reason is most of people in Russia live in a flats, not in a separate houses. So an ask for flats is way higher and it's easier to sell when the time will come.
In Russia to buy a flat for the lowest price is possible on a stage of foundation. It's when the construction is just starting.
And one more thing that makes the price lower is when you buy a flat which must be finished in so called "black maintained" variant. It's when there nothing but just a cement box inside of apartment. No room doors, no sink, no leveling... nothing.
Exactly one of such "black maintained" flats located in Ufa, Russia we reviewed in this episode.
This is one room apartment with a common area 45 square meters in a residental building which is started construct in the middle of 2012.
In the middle of 2012 on a stage of foundation there price for a one square meter was $1,100.
About a year later, in the middle of 2013, when the building is already grown up for at least 40%, the price for one square meter is grown up to $1,350.
In the beginning of 2015, when this residential building will be completed, the price for a square meter will be about $1,550.
Thus, in the middle of 2012 the price for such a 45 square meters flat was about $49,000 and in the beginning of 2015 it will grow up to about $70,000.
An investors who purchased such apartment on a stage of foundation and will sell it as soon as it will be completed, will net about $21,000.
Once the flats in uncompleted residential buildings and flats inside of them can't be registered in Russian Registry, there mostly just two ways to buy such flats - or by Co-Investment Agreement or through the Contract of Participation in Joint Construction.
What about the Risk of such investments. The main thing is to know the real estate market well and trust only though construction companies which have a perfect background like a huge experience on a market (at least 10-15 years of successful work), many finished constructions of residential buildings, no bankrupts, etc. Usually such a companies have a higher prices for a square meters than new companies which are just coming to the market and trying to attract clients though the price dump, but it's definitely better to pay some more and work with a reliable developer than pay less and invest in newbies. Buying flats are not a cheap investment, so every step must be checked and re-checked.