Konstantin Fisunov on Buying Cultural Heritage in City Centre: Emotions and Obligations

Kommersant reports that 15 bidders vied for a cultural heritage site — the house of Russian pilot Boris Rossinsky in Khamovniki District. Competition for the mansion was fierce, driving the final price more than three times higher to RUB 672.1 million. Such a significant investment was made by the buyer despite the lack of basic utilities and the building's merely satisfactory condition. In addition, the new owner will be required to restore the property by 2030.

Kommersant Review explored why investors buy state-owned cultural heritage sites for hundreds of millions of roubles and whether such investments are justified.

Konstantin Fisunov, Head of Practice at FBK Legal, observes:

The final price of a cultural heritage site is fully reflective of the interest of bidders in a particular property. The key pricing factor in real estate transactions is the location of the property in question. The Khamovniki mansion, in particular, is a sound acquisition given current prices per square metre inside the Garden Ring. However, the purchase of an elite, one-of-a-kind property in central Moscow is largely driven by the buyer's emotion and aesthetic perception.

At the same time, when acquiring a cultural heritage site, the owner must comply with a number of conditions. For instance, they are to carry out restoration and repairs and to adapt the property to modern needs at their own expense.