Moscow recently hosted The Russian Summit, an event designed to educate and inform delegates about the requirements of Russian buyers. We asked Maria Kotova, Executive Director at Knight Frank Russia and a speaker at the event, about some of the key issues under discussion. 

Why are Russian buyers so important for the global luxury housing market?  

Russian buyers are responsible for a large proportion of residential property purchases in foreign markets such as the UK, Switzerland, and France. A lot of foreign markets, Courchevel for example, were basically created and later on driven by Russian demand. This happens because Russian HNWIs are very interested in highly exclusive, unusual, and unique properties of exceptional quality that can be found in abundance in the long-established foreign markets. 

Do you think the 2008/09 global financial crisis weakened the buying capacity of Russian buyers significantly? 

The Russian demand for prime foreign properties didn't record a fall during the 2008/09 global financial crisis. On the contrary, the number of Russians buying properties abroad has grown over the period, as they traditionally consider the strong foreign markets to be 'safe havens'. The fluctuations in the exchange rate were quite favourable in terms of the Russian rouble, which encouraged a number of Russian buyers to purchase some high-end properties in London. 

In your experience, what type of property do Russian buyers tend to target in the world's key cities? Do they prefer new-build to re-sale properties, apartments to townhouses, for example? 

In terms of investment purchases, Russians prefer new-build serviced apartments they can rent out. The most interesting market for them at the moment is prime central London, where stock is quite limited at the moment. 

Do wealthy Russian buyers usually employ agents to identify the best properties or do they research the market themselves? 

If an individual relies solely on his/her own views while choosing a property his portfolio will consist of properties skewed towards asset classes, sectors, and locations that they like the most. Individuals don't have the knowledge, the experience, or the vision that the real estate professionals do. That's why about 45% of buyers refer to the services of real estate agents.

It is almost impossible to find a property that is not on the open market without the help of an agent with an international network of offices, especially if you are a Russian buying abroad and seeking a unique property. Agents also have the advantage of knowing the latest market trends and can provide detailed analysis. Finally, using an agent simply saves a busy Russian buyer's time. 

Which cities and second-home locations are most popular with Russian buyers? 

To live in or invest in, the most popular locations are central London, the Home Counties surrounding London, old European capitals, and Cyprus. For seasonal or holiday use, the European resorts, particularly those in Italy and France, remain the most popular. 

Are there any emerging markets that you think will become popular with Russian buyers in the coming five to ten years? 

Russian prime property buyers prefer well-known and clearly operating foreign markets. We don't expect any new markets that would earn the trust of Russian buyers to emerge within the next five to ten years. 

In your experience what are the key differences that agents need to bear in mind when selling to Russian buyers as opposed to other nationalities? 

The agent should remember that Russian buyers pay a lot of attention to detail. They like to feel unique and exclusive, and so prefer properties that offer the same qualities, especially those not on the open market. A perfect finish using the very best materials, high ceilings, floor-to-ceiling aspects, a constellation of world-renowned brands, a bespoke approach, and high-level service will clinch the sale. 

How important is a clear web strategy for real estate agents when targeting Russian buyers? Is the majority of their research web-based? Are new forms of social media such as Twitter widely used? 

About 20% of property searches are undertaken via the internet, which makes it crucial. We pay a lot of attention to the development of our website: www.knightfrank.ru. As a result, it was the winner of the Golden Site Award in the category 'Best Corporate Website' two years ago. We have also closed several deals online. It is important to note, though, that some properties are not on the open market and are not accessible via the website, so the web search cannot cover everything. We also use Knight Frank Moscow's corporate Facebook page and Twitter accounts to announce some interesting events and news.  

In your opinion will Russian buyers become more important to the luxury property market worldwide in the next five years? Will their property requirements change and, if so, in what way? 

The growing Russian demand for foreign properties is definitely set to continue as the second wave of economic turmoil is expected to strike. This will encourage more Russian prime property buyers to look at the Western markets in their search for liquid, profitable, and secure investment assets. 

Is the current political uncertainty in Moscow fuelling greater foreign investment among wealthy Russian buyers who are keen to invest abroad? Do you expect to see more foreign property purchased in the run up to the presidential election in March 2012? 

Indeed, we expect to see further growth of foreign investment demand focused on the diversification of Russian investment portfolios due to political and economic risks that might take place in spring 2012.