......Russian citizens have emerged as major players on the local property scene and real estate professionals are reflecting this in their choice of sales and marketing people.
We at Real Estate Magazine (REm) are noticing more and more Russian nationals joining the various developers and agents we are in regular contact with ... and it’s not difficult to understand why.
As one major developer Haim Bar-David of Heights Holdings told us: “The Russian market is currently accounting for a very high percentage of
our sales – maybe as high as
80 per cent.”
HH took on Natalia Prygunova as a sales executive last August to boost their marketing efforts.
Recently Natalia attended a 12-day roadshow at the Royal Garden Plaza where, initially, she was the only Russian present although others soon followed the lead.
She said: “One Russian man said to me that were I not Russian he would not come to look at our projects. The next day he bought two condos.”
She added: “Russians are very decisive. If they like what they see, they buy. Others at the roadshow were coming up to
me saying they were ‘just looking’ and could not make
up their minds so quickly.
“Russians like it here in Thailand. The 30 days on arrival visa is much easier for us than in, say, Europe or America where we have to prove we have a ticket home, have booked a hotel, and have enough money to stay, for example.
“Because Pattaya is popular with our tourists they feel it is good for them to invest here. Also, they like to have a second home in a warm country so they can get away from our very
cold winters.

(The Russian market is accounting for a very high percentage of our sales – maybe as high as 80 per cent)

“Prices here are much cheaper than at home. A condo of similar quality in Moscow will cost maybe 10 times as much as it would do here. So when Russians discover the Thai prices they want to buy.”
Little wonder then that the Thai property market appears attractive to a people who only comparatively recently have been able to travel around the world with greater freedom.
So how do other property professionals view the potential of the Russian market?
At Town & Country Property MD Cees Cuipers told us: “We have a full-time Russian property consultant on our staff, Kosta Chernyaev. He has previously worked in property here in Thailand and also has marketing experience. He advises me on branding, advertising and market approach.
“These days, every market is important. Previously we have not had a lot of Russian clients, so our success in 2009 will not depend on them.
“Kosta only started to work with us recently. We all hope for the best. He operates in very professional way and has a lot of contacts not just here in Pattaya but also back in Russia.”
Cees added: “What the Russian market will bring for any of us this coming year is very much like looking into a crystal ball as we hardly know how investors worldwide will recover from the economic crises. I believe Russians were hit pretty hard.”
Any special Russian measures?
“A bilingual website is in place and also we print project brochures in Russian language. Office windows at all our branches are signed in Russian language as well,” Cees concluded.
Exotiq Real Estate have also taken on a Russian staff member, Verona Kondratyuk, as their sales and marketing manager – Eastern Europe. Verona received part of her education during six years spent in England.
Spokesperson for Exotiq Pui Cincharoen said: “We’re projecting 30 per cent of sales will be to Russian people, a big jump from our first year which was less than five per cent.”
Exotiq have not done anything significant so far with Russian marketing as Verona had only recently joined them. Pui continued: “We’ve produced Russian fliers, a translation from our English promotion fliers, as well as intergrating Russian messages into our current and upcoming print advertising.
“We will have a Russian website up and running and promoted properly within three months and plan to produce a Russian version of our Exotiq Thailand magazine, but not until we have the right distribution channels secured.
“However, with recession effecting Russia as well, we also have to strategise cautiously.”
Rock D Zulumkhanov has been working for Premier Homes for more than a year now and he is one of their senior real estate consultants dealing with both property sales, rentals and corporate relocation.
Premier MD Clayton Wade told us: “Rock came to us with previous real estate sales and marketing experience abroad and has proven to be very valuable in assisting both Russian and other foreign clients who are relocating to Thailand.
“The Russian market is very important to our company and we have dedicated a lot of time and funds towards marketing and advertising to the incoming Russian tourists in magazines, newspapers and on our website, which has the option of viewing all information in Russian.”
Marketing consultant for Ocean 1 Tower developers, Siam Best Enterprises, Peter Handel-Mazzetti, said: “Like most agents and developers we are well aware that the proportion of Russian buyers and clients has risen rapidly over the past two years.
“During this time we have sold many condos and houses to Russians and all indications are that this trend will continue. Referrals from satisfied Russian owners is also proving a valuable source for potential buyers and enquiries.”
Peter added: “We were extremely pleased with the reaction and response to us participating in the Moscow International Property Show.
“As a result, to cater directly for the Russian market our hand-out material for potential buyers now includes a Russian translation. Also the Ocean 1 Tower website www.ocean1tower.ru is a Russian language version.”
Gavin Perfect of Pattaya Paradise City Property has employed Elena Bazhenova as a sales consultant. Previously Elena has worked for many embassies on translations.
He said: “We will be releasing many of our own developments next year and we are pushing to include the Russian market in our marketing plans. Most of our advertising is now in Russian.”
Waterfront’s vice-president for sales and marketing, David Walton, told us: “The Russian market is very important to us so, the need to communicate effectively is a must. Natalia Nikiforova is an essential member of our Customer Service team.
“Russian buyers have been a very important factor in Pattaya property sales over the past few years.
“The rate of completed deals may slow down over the next few months but they will continue to be a major customer group.”
Waterfront has sales materials produced in Russian; they do bi-lingual press advertising; and their website also has a Russian section. “It’s a very significant market and developers must invest in effective communication,” said David.
“From our experience of participating in recent Russian property exhibitions we know that many potential buyers do not speak English, so the onus is on developers here to get the message across.”
Gareth da Silva of Benchmark Property Consultants tells us he is giving serious consideration to employing a Russian sales agent.
They have someone in mind who has previous experience as a property agent in St Petersburg, but they are yet to finalise any appointment.
We asked Garth how important is the Russian market to you moving into 2009?
“It will be paramount,” he said, “as we can see with the deals we do now – and that’s without our company doing any specific marketing to Russians. They will play a big role in the property market in 2009 I believe.”
“We have plans for next year which will include many strategies that will focus on the Russian market. Benchmark’s Russian division will be an added advantage to our popularity and success we gained in the short time we have been in the market.”
Russian buyers are mainly interested in the condo market. This was a point made to us by May Watkins of Five Star Villas & Condos. According to May it seems that full ownership (up to 49 per cent of the overall ownership in a condo block can be in a foreign name) is a concept they are most comfortable with and best understand.
One developer anticipates that the preference for condos will evolve over time. Terrence Collins of The Vineyard development near Mabprachan says he is thinking of employing a Russian national to help with marketing.
“At the moment the Russian market seems focused more on condos than houses,” said Terrence. “Most Russian buyers are mainly tourists wishing to escape the cold winters for a few months of the year.
“But, as more and more Russians decide to take up permanent residence here in Pattaya, I feel they will start moving from the confines of their condos to something bigger and better, where they can have BBQs, pool parties and enjoy family life. So, houses are the next step.”

(We know many potential buyers do not speak English, so the onus is on developers here to get the message across)

Terrence says the Regent’s School close to his project, now has around 30 Russian students enrolled in their campus, whereas only a few years ago there were none. “An encouraging sign that the Russians are here to stay,”
he said.
Any special moves specifically aimed at Russians?
“We have advertised in Russian language magazines and I am considering translating our website,” said Terrence.
Thanks to all who contributed and apologies to those who took the time to reply to our short questionnaire but whose remarks did not make it into these columns. We very much appreciate your input. Ω