Center for Evidence- Based Expertise at the Gaidar Institute presented results of Russia's first comprehensive study of the real estate services market

The study was conducted across the entire RF in the fall of 2024 and involved more than 1000 realtors and more than 1500 actual and potential clients of real estate services. Experts estimate that the size of real estate services market, which existed in Russia for more than 30 years, amounted to Rb410 bn in 2024.

Authors have analyzed judicial practice, identified pressing challenges faced by both clients and realtors and proposed and tested regulatory scenarios for solving these challenges.

Results of the study reflect that the most favorable regulatory scenario is to create a Voluntary Registry providing registered realtors the opportunity to conclude a real estate contract with a client, solving the challenges identified by the study. The potential effect of such a mechanism is estimated at extra Rb20-40 bn per year due to «whitewashing» of the shadow sector.

When the Voluntary Registry is introduced, the condition for joining it may be the realtor’s liability insurance and lack of criminal records for economic and major crimes, while the main advantage, as noted above, will be the right to conclude a realtor’s contract.

However, liability insurance will be a condition for entering the Voluntary Registry, which experts emphasize. If a realtor is not interested in a new contractual type, he can work according to the established model, concluding a service contract (note that 87% of realtors conclude a «contract for provision of intermediary (real estate) services»).

Research