Forest Dwelling

Many of those who decided to buy a country house definitely want to become owners of at least a small piece of forest and are willing to pay a good price for it. But the problem is that despite the abundance of choices, forest plots are a true suburban exclusive. According to experts, about 90% of applications for the purchase of land plots include the main condition - the presence of a forest. At the same time, in the total supply of land plots, only 13% are forested, and another 10% are located on the edges of forests. Demand for forested plots has been, is, and will remain high. The thing is, there are almost no new forested plots entering the market, as all the possible forest lands that could be legally withdrawn and registered as private property have already been released. And it is already prohibited to register new lands, for example, from the state forest fund. In new cottage settlements that offer forested plots alongside plots with a level landscape, forested plots are primarily reserved and sold. "Such plots are often located on the edge of the settlement, and sometimes allocated to "elite" quarters separated from the main part of the settlement," says Alexander Rykov, Director of Marketing at the suburban real estate department of Penny Lane Realty. "The area of forested plots is usually larger than the area of non-forested plots. For example, the average area of non-forested plots offered in cottage settlements on the primary market is 19 acres. The average area of forested plots is 31 acres. In many settlements, adjoining forests are offered for rent alongside forested plots." Almost all forested plots are located in the western, southwestern, and northern directions. At the same time, all the "desirable" lands have long been purchased by developers. According to the company TWEED, there are 20% of forested plots on the Kaluga and Kiev directions, over 50% on the Minsk direction. On Rublevo-Uspenskoe Highway, there are approximately a quarter of forested plots, and on the further Rublevo-Uspenskoe Highway (after 25 km), more than half of the plots are forested. On Novorizhskoe and Dmitrovskoe directions, it's 25-30%. The further away from Moscow, the more such offers there are. "In the total supply, plots with forested trees are more common on the secondary market, because over several decades of the existence of these dachas, huge trees manage to grow on the plots," notes Anna Shishkina, Head of the Marketing Department of UK "Absolute Management." The type of forest also plays an important role. The most in-demand are coniferous or mixed forests, while deciduous forests are less popular. It's no wonder that the presence of a forest on or near a plot raises the value of the land by several times. A forested plot, under equal conditions, usually costs two or more times more than a non-forested one. "The most expensive forested plots are currently offered on Rublevo-Uspenskoe Highway, in Barvikha, and Zhukovka. Here, the cost of such a plot ranges from $100,000 to $250,000 per acre," says Alexey Artemyev, Head of the Suburban Real Estate Department at Kalinka-Real Estate. "The cost per acre of land without a forest in the same direction is within $50,000-100,000. On Novorizhskoe Highway, a forested plot costs around $50,000 per acre, while a non-forested one costs $15,000-25,000." The presence of a noisy highway nearby or the absence of utilities can reduce the cost of a forested plot. However, in most cases, prices are still higher for plots with forests. "The high cost is not only due to buyer demand - forest settlements are more expensive in terms of the developer's costs," explains Ilya Sapunov, CEO of "Krasivaya Zemlya." "The price increase is associated with the need to change the land's designated use as well as the greater complexity of engineering works - construction of access roads, provision of utilities, etc."

Legitimacy of a Cottage on the Edge of the Forest

Understanding that the presence of tall pine trees on a plot significantly increases demand and the value of land assets, developers often resort to a "deal with their conscience" and sell "defective" goods. According to experts, if a plot of land with a forest is offered for sale, there is an increased likelihood of some violations in its registration by the seller. Therefore, when considering the purchase of a plot of land with a forest, it is necessary to conduct mandatory legal expertise to ensure its clean ownership by the seller. "Often, this happens with monstrous violations that can lead to legal proceedings and even the annulment of the transaction," warns Irina Kalinina, Head of Country Real Estate at TWEED.

The most famous legal scandal was the case of the "Baltiya" settlement on the Novorizhskoye Highway. In the late 1990s, the developer obtained a lease for a 20-hectare plot from the Moscow region authorities, and then illegally annexed another 40 hectares, part of which belonged to a nature reserve. Thus, part of the settlement was practically built on illegally seized state forestry land. Currently, the settlement is only "half alive". Many houses are dilapidated and overgrown with shrubs. The buildings are considered illegal and it is prohibited to live in them, while the owners have been litigating with local authorities for over 10 years.

To avoid this, first and foremost, it is necessary to check the designated use of such a plot. A forest on former agricultural land converted for country construction is the most realistic and safe option for acquisition. The only risk is the prohibition of cutting down trees and shrubs, which may complicate the construction of a house. However, even here, one should be attentive. It is essential to familiarize oneself with the documents on the basis of which this forest was withdrawn. These documents are listed in the land ownership certificate. "Often, forested lands for the construction of cottages are introduced into circulation semilegally: district administrations lease plots for recreational and sports purposes, supposedly," comments Sergey Popravka, a lawyer at Penny Lane Realty. "By law, tenants have the right to build on 10% of such territory. However, in practice, a much larger portion is built upon. Owners of cottages will not be able to obtain ownership rights to such lands. At any time, the inspection can invalidate the forestry permit, with the possibility of contesting the transaction, which will require restoration of everything to its original state."

In the forest zone of the Moscow region, there are also cases of self-seizure of territories. A typical example is as follows: a forest is leased, then it is cut down, and buildings are constructed in the cleared area. Later, the prosecutor's office imposes a fine, which the violators dutifully and without issues pay - and continue to live. There is also another method used by certain entities to "obtain" a piece of forest. Sometimes, in order to remove an area from the State Forest Fund, the forest is "infested with bark beetles" or other diseases. At least, this is what is recorded in the documents. Such a forest is slated for destruction (possibly, only on paper), and the territory is reclassified as "non-forest". "There can also be problems with defining the boundaries of the plot if the plot borders on the forest fund," adds Andrey Vyatkin, CEO of Marshal Estate. "In such cases, the boundaries are usually undefined, and at some point, the forest inspectorate may make claims regarding the boundaries."

"If you are purchasing land on the secondary market, then being the 3rd or 4th owner of a forest plot significantly reduces the chances of encountering any problems with the acquisition. Such a buyer already becomes a so-called 'bona fide purchaser'," notes Alexey Artemyev. "However, if you are acquiring a forest plot from a legal entity and you are the first buyer, then the risks increase. Be attentive - examine the documents, verify the history of the transfer of the forest into ownership, seek assistance from lawyers who specialize in these matters."

In the sales contract, the full amount of the transaction must be specified. If later the property is seized from the owner, the court will protect the rights of the bona fide buyer and obligate the seller to compensate the entire amount stated in the contract.