Where is it?

Moscow, the capital of Russia, is located the banks of the Moskva River in the European part of Russia.

What's so special about it?

Russia's political, economic, financial and cultural epicentre - Moscow - dates back to 1147. Up to 7% of Russians reside here and it can lay claim to being the most populous city in Europe. Last year, the Mercer Human Resource Consulting 2006 Cost of Living Survey found that it topped the list of the world's most expensive cities to live in.

Earlier this year Russian multibillionaire Vladimir Potanin paid George Michael Euro2.6m to sing at his Moscow New Year's Eve party. This is not unusual as the Forbes 2006 List of Billionaires found Moscow was home to 33 billionaires and came second in the rankings after New York. It's hardly surprising then that the Moscow Gucci store has the second highest turnover in the group, with the Big Apple once again just beating it.

Who lives here?

As well as billionaires such as Chelsea boss Roman Abramovich, Moscow has always been an intriguing location for music stars including Paul McCartney, Madonna and Scissors Sisters. In 1978, Joe Dolan was the first western artist to perform there. Bob Geldof even managed to get Putin to allow him to stage a Live 8 concert there in 2005.

Famous names born in the city include tennis star Anna Kournikova and Crime and Punishment author Fédor Dostoevsky.

What's the property market like?

Currently in Moscow there are plans to build the Federation Tower, which when complete next year will be Europe's tallest building. In 2010, the Euro1.2bn Russia Tower is completed and will be the world's tallest tower. The city is undergoing rapid development with prime locations reporting growth of 37%.

Russia's wealth from oil and gas has given it high levels of capital. According to Mike Hogan, from Enterprise Ireland's office in Moscow, Russians still mistrust their banking sector, have a low propensity to save and when they have money they either spend it on cars, consumer goods or property. Local mistrust of banks accounts for the fact that only 5% of property deals are done with mortgages - in most cases cash is involved.

While demand continues to outstrip supply, prices will continue to increase.

The trend emerging however is that young locals will increasingly be unable to afford property, even with a mortgage, so developments will have move outside the city where prices are cheaper.

How do you go about buying property here?

The Moscow Times and Moscow News newspapers are good sources, with the Times producing quarterly reports on the sector as well as a complete catalogue of available properties. You don't need to set up a company to buy a property but it can lessen the tax burden later as nonresidents are liable to 30% tax when they sell on the property.

Foreigners are allowed to transfer funds in or out of Russia and are not obliged to declare their source. In most cases, the buyer is normally liable for all costs in the process. Agents are sometimes employed to represent both sides, commission of 24% is the norm and the Russian Guild of Realtors is the best source for reliable agents.

In true Russian style there, is also a law that exists where a seller can renege on a deal if they claim they were drunk at the time of the deal, therefore very often a doctor is present at a signing to certify the sobriety of the seller.

Where are the best places to live/buy?

The Golden Ring in the city centre is home to a number of embassies and is considered the most secure and luxurious location with Patriarch's Ponds the most expensive.

Arbat is another prestigious neighbourhood, one of the city's oldest streets and a tourist magnet.

Kropotkinskaya is a prestigious neighbourhood located along the Prechistenka Street and the Moskva River.

The neighbourhood is home to most of the embassies in Moscow.

It is also home to the Pushkin Art Museum and the Cathedral of Christ the Saviour. Tverskaya Street, near the Red Square and Kremlin, is the busiest shopping street, the Ostozenka area has seen the highest price increases, and Krasnaya Presnya is one Moscow's newest and most fashionable addresses.

What's the rental market like?

In June 2006, the mayor of Moscow issued a decree that 15% of all apartment developments must be put aside for letting.

This was to reduce the shortage in highquality rental accommodation.

In 2006, average rents in prime locations rose by 12% and by 30% in some luxury locations. Typically a two-bed western standard apartment in a good neighbourhood rents for about $4,000 Euro3,100) per month.

Average property prices?

In 2006, average prices are currently US$12,772 (Euro9,811) per sq m for a typical property. In Ostozhenka, prime real estate sold for US$22,470 (Euro17,260) per sq m while in suburban cottage developments property can be obtained for US$5,000 (Euro3,840) per sq m. An average-sized Moscow two-room apartment now costs in the region of over $200,000 (Euro153,650).

What are the tax breaks between Russia and Ireland?

Ireland signed a double tax agreement with Russia in Moscow on 29 April 1994.

There is no stamp duty in Russia and while Irish buyers are not required to declare the source of their finance when buying a Moscow property, they are required to register any earning with the Irish Revenue authorities.

FAST FACTS

Getting there: BMI flies daily from Belfast and Dublin, with a stop off at London Heathrow.

Area: 1,081 kms Population: 10,469,000 Currency: Ruble [1 RUB = Euro0.03] Property prices in US Dollars.

Weather: Temperatures range from -12°C in winter to 22°C in summer.

Transport: Moscow is served by "ve airports, two passenger river terminals, three freight ports, the world's busiest metro and nine rail terminals. Trains are cheap so it is Russians' transport of choice.

Going out: After Lenin's Mausoleum, the Kremlin and Red Square, visit the KGB Museum and the famous Bolshoi Theatre. Clubbing begins about midnight, mainly along Noviy Arbat St.

Eating Out: Recent years have seen a growth in restaurants, but many are overpriced.

Shopping: Tverskaya Street is the shopping mecca, Kitai-gorod is one of the most expensive shopping streets in Europe but Tsentralny Dom Khudozhnika is good for arts and crafts.

USEFUL CONTACTS
» Irish Embassy in Moscow Tel: +7-495-937 59 11
» Embassy of the Russian Federation in Ireland Tel: 01-4922048 / russiane@indigo. ie
» Russian Guild of Realtors www. rgr. ru
» Real Estate Agents in Moscow: www. moscowcity. com/real/agents
» Russian Tourism Board Tel: +7 495 980 8440 / www. russia-travel. com
» BMI Flights Tel: 0044-870 6070 222 / www."ybmi. com