The Russian government is considering legislation to restrict purchases of commercial property, land, and homes by foreign investors.
President Vladimir Putin (foreground)
The new law, which has been proposed by the Economic Development Ministry, would require foreign-controlled companies and individuals to get permission from the government for these deals. The legislation is seeking to prevent the creation of foreign enclaves in the country.
The move follows President Vladimir Putin’s state of the nation address, in which he pledged that the government would act to head off any efforts to create “self-contained ethnic neighborhoods” in the country.
The bill states permission for buying specific commercial properties, lots, or homes would be reviewed and given on a case-by-case basis. Once given, permissions would be valid for three years.
Olesya Dzyuba, a market researcher at Jones Lang LaSalle, said that this measure would create what have been described as “excessive hurdles” for investors and would run counter to the government’s efforts to improve business culture.
The new law will extend the time required to complete real estate deals by at least 30 days, according to Denis Sokolov, the head of market research at Cushman & Wakefield. He estimates that foreign companies account for nearly one-third of Moscow’s real estate market.
Vladimir Volokh, the chief of the Federal Migration Service’s public council, stated recently that the country had no ethnic enclaves formed through properties bought by foreigners. However, he added that he supported placing a restriction on prospective buyers, pointing out that about 10 million foreigners are currently living in the country.
Previous Post
Adderstone Group in Record Subsidiary Disposal
