The Fast Sale of UFA Homes in Russia
The Financial Times reported in May that Ufa had become the world’s first new high-tech sports trading company. This brand name of a depositary receipt, which is often abbreviated as UT or UFA, represents the financial counterpart of a bet. Betters can make bets on a specified race by depositing ufa into a designated bank account. The betting amount will then be transferred to the designated bettors’ account when the race is held.
Betting exchanges have been active since 1998 and at present, there are more than twenty-six thousand ufa exchanges in the world. According to the president hotel and Casino and Resort Association (PABA), ufa plays an important role as both a financial facilitator and a participant in the local economy. Ufa has successfully encouraged more people to take part in betting exchange activities, with the result that Moscow and St. Petersburg became the latest names to feature on top ufa lists. According to the newspaper, President Hotel and Casino and Resort Association head Alexey Kolesnyov said that ufa “has changed the way people think about investing in Russia.”
Alexey Kolesnyov, who also serves as advisor to the St. Petersburg State University’s Department of Economics, told the newspaper that ufa had achieved its goals so far. “The majority of our investors come from ordinary people like us,” he was quoted as saying. “We didn’t belong to a special group of businessmen who control the economy. The main reason for us starting ufa was the government’s plan to encourage more people to use the national money in buying homes in Russia’s largest city.”
Belaya, which is the second largest city in the republic, currently boasts about 30 million inhabitants, of whom many are foreigners (many of them from the ufa zones). Among them are expatriates from Britain, Spain, Germany and France. One can’t help noticing the obvious – the number of foreign retailers and traders, both individuals and businesses in the city centre and in the surrounding area of the Rostov region is definitely on the rise. And, of course, with this increase in population, comes an increase in the demand for housing, both in terms of ufa houses and more traditional residential apartments.
With housing costs in Russia increasing on a continual basis, especially since the onset of economic and political sanctions imposed by the United States and European Union, there is no doubt that the housing sector in Russia is going to be very busy in the coming years. In addition to the major ufa market in Moscow and St. Petersburg, there are also large numbers of properties available in other Russian cities, particularly in the more remote regions of Ural and Belaya. Particularly popular are properties located in rural areas, particularly in Kashtan and Zilum, near the towns of Barnaul, Nizhevsky, Klinovy and Vorkuta. Kashtan, the region situated in the foothills of the Ural Mountains, is home to a large concentration of ufa specialists and expatriates from Britain, Spain, France and Germany.
However, not all ufa specialists live in the regions described above. Many of them now deal with residential properties and, as a result, are selling their apartments in a fast-paced process in order to get rid of them as quickly as possible. The fast sale of these types of properties means that buyers from abroad can quickly buy up a slice of the growing number of ufa homes in Russia. Although the rush to buy up homes in Russia may soon dry up, the impact of the global recession on the Russian property market has only just begun to emerge and buyers need to act fast if they are to take advantage of some of the better ufa deals on offer in the country.