Today, the main risk associated with real estate investment is considered to be de-privatization. Experts recommend examining a property’s history not only within the ten-year statute of limitations but also over a longer period—all the way back to the time of privatization. It is equally important to ensure the property is used for its intended purpose: any violation could result in confiscation, and this applies not only to land. In addition, investors take economic factors into account: inflation, rising construction costs, and the risk of downtime, which directly affects returns. Read more about these and other risks in the article.

Experts classify claims for de-privatization as so-called historical risks—situations where violations occurred during the early stages of an asset’s transfer. As this practice becomes more common, investors are stepping up their due diligence on properties. Therefore, if privatization was part of the transaction chain, one must ensure that the decision was made by an authorized government body and that there was no prohibition on transferring the privatized property into private ownership, recommends Dmitry Raev.

It is equally important to vet both the owner and all parties involved in the transaction. As recent years have shown—including the Domodedovo Airport case (No. A41-5707/2025) holding foreign citizenship or a residence permit, as well as control by individuals from “unfriendly” jurisdictions, can pose risks to the asset.

If control existed, it is necessary to ensure that the necessary regulatory approvals required by anti-sanctions legislation—such as permission from the Government Subcommittee and so on—have been obtained," comments Dmitry.