Digital and online technology changing the real estate market in Russia

Abstract

The real estate market has to respond quickly to all global and local changes, such as the development of digital technologies, new legislation, the COVID-19 pandemic, and shrinking demand, and each major market player reacts accordingly. The government announces a new strategy in an effort to have information technologies introduced by its official agencies and the population and establish an electronic government system. Developers launch virtual sales and 3D tours, willing to attract new buyers from distant locations, cooperate with banks and provide assistance in obtaining digital signatures. Banks offer new services by consolidating online property search engines and mortgage issuance. SberBank’s DOMclick service is described in the article in detail. Evenconservative notaries have joined the process: now they can notarize online deals and register electronic purchase and sale contracts.Online deals have several steps: choosing and visiting the property, entering into a preliminary contract and making an advance payment, performing the due diligence, preparing for the deal, having a mortgage issued and the deal registered, and now each step can be made online.Changes have affected both sales contracts and rental agreements. A leading Internet company has chosen to rent properties only from those landlords, who register rental agreements on its platform in the capacity of partners and have digital signatures to sign their electronic contracts.New services have become possible thanks to the development of new digital and online technologies, new tools appear to meet the market needs. Although some risks arise at certain stages, online technologies have been successfully adopted by the real estate market.