Moscow’s #1 Real Estate Online Platform Goes Public | CIAN Launches IPO.

CIAN is the online platform that offers nearly every available property in Moscow. If a property is available for sale or for rent in Moscow, there is a nearly 100% chance that it will be listed on CIAN. And now CIAN is offering an initial public offering in both New York and Moscow.

In a previous post, I detailed how to use CIAN to find an apartment in Moscow.

Reuters has done a fantastic job of explaining the nuts and bolts of the IPO. In this post, I would like to explain why I use CIAN with my Moscow real estate agency, and also talk about some of the other players in the Russia online real estate space.

There are certainly some juggernauts in the Russian online space. Avito is hands down, Russia’s largest online trade platform. This is the site you would use to buy and sell anything from used furniture to finding a guy with a truck who can help you move. It also offers real estate listings. According to the Russian business news site RBC, Avito has a market value of $4.9 billion. Avito attempted to buy CIAN recently, but that deal was blocked by the Federal Anti-monopoly service with the argument that they would then control more than 50% of the online real estate space.

The Russian real estate market has been white hot this past year, and CIAN is a central player.

The primary online Russian giant is, of course, Yandex. They aren’t just an online search engine like Google, or just a news aggregator. They have merged with Uber to control the booming taxi market, have their own car-sharing service, and also provide home grocery and restaurant delivery, to name a few. Yandex is a smart and powerful company, so when I heard that they were moving into the real estate space a few years ago, I assumed that this spelled the end for CIAN. I couldn’t have been more wrong. CIAN is continuing to raise the rates for posting properties on their site, and agencies and homeowners alike, are paying up.

Looking for an English-language Real Estate Service in Russia?

The other interesting player is Sber, formerly known as Sberbank, that is now successfully diversifying into areas outside of banking. Sber offers a platform where an owner can offer their property, the buyer can organize financing, and all of the legal matters are taken care of in the bank, thus making redundant much of what a realtor offers. With Sber’s muscles, I am also fascinated that they don’t seem to have much of a dent in CIAN’s business.

Avito, Yandex, and Sber are very much national names, used in nearly every nook and cranny around this vast nation. CIAN is more Moscow specific, which makes sense given the enormous economy of the capital city. In my view as a Moscow realtor, the key advantage CIAN has against its competitors is an easy-to use-platform with a strong accountability feature. If I’m looking at an ad on CIAN, I am almost 100% sure that the ad is real. On other platforms, I don’t have this confidence.

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It will be interesting to see the future of CIAN with the looming IPO, and with their reported plans for expansion around the nation. For Moscow realtors like me, we continue to see CIAN as THE central player in the online real estate scene in Moscow. And it will be fascinating to see what plays Avito, Yandex and Sber have up their sleeves.

And on a personal note, with all of these massive, smart, and nimble companies essentially removing the need for much of what realtors offer, I have seen many of my competitors close up shop. And I am inspired to provide more value than an online platform, through understanding of the local market, knowing what negotiation levers are available and providing comprehensive due diligence throughout the process.

Couch Potatoes Cheer For Food Delivery In Russia

If you thought the McDonald’s drive-thru was lazy, Russia has brought the art of apathy to a whole new level with automated food delivery service.

There are two main food delivery services in Russia:  Yandex Food and Delivery Club.

Yandex Food is in 24 Russian cities while Delivery Club, is only in Moscow, from what I see.

In the end, Yandex will win… at everything, in Russia.  They are taking over, from taxis to money transfer systems, now real estate, and much more.  If you think of Yandex just as “Russia’s search engine”, you are missing out.  It is much more.

And that now includes swarms of young men with thermos-box backpacks, hustling and bustling through the streets of major Russian cities, rushing steaming victuals to the famished masses, who are too lazy to do anything more than stand up from their couch and open their front door.

These food delivery guys are improving their physical condition, while the rest of the population is rapidly degrading.  If I were into conspiracy theories…

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In the event of a zombie apocalypse, these will be the only survivors in Moscow

Not only is pushing buttons on your cell phone easier than brushing your teeth, combing your hair, and changing out of your pajamas… it’s also usually quite a bit cheaper.

A Burger King bacon cheeseburger, 3 Whoppers (w/cheese), 3 medium fries, one order of “village-style” fries and 15 chicken nuggets for 500 rubles.  That’s about $7.69 (USD).  And the best part is, that’s the price only if it’s delivered.  If you made the effort to put on your shoes and coat and walk outside and breathe fresh air, the price would be considerably more.

All the nutrition, without all of the cost and exercise:  Here’s how my wife bought all of that fantastic food, delivered to our home, for our kids, on an evening when she and I were out.  Delivery Club was having a promotional sale:  If you spent 800 rubles or more, they would subtract 300 rubles from the total and give you 15 chicken nuggets.  And yes, the delivery itself is included in the cost.

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How did the creators of the movie Wall-E see our future so clearly?

These food delivery services aren’t limited to fast food.  It seems any restaurant that wants to stay in business had better link itself to the service, including even some of the lesser-known establishments, like this small Indian restaurant.  So, whether you fancy sushi, pizza, shish-kabobs, vegan, or a steak, you can just push a few buttons on your iPhone and lay back and wait for the doorbell to ring.

And because these food delivery systems are incredibly efficient and convenient, they are also very disruptive.  It will be very interesting to see how it affects the restaurant business, and over time real estate value, particularly for restaurant locations.

And the other night when my wife and I were out and our kids were devouring Burger King at home?  Well, she and I were sitting with some friends in Vokrug Sveta, which I sort of refer to as a “trendy international food court”, and watching the food delivery guys rush past, with their thermos boxes.

And that’s when we got a fantastic Moscow money-saving idea:  why not walk into a busy Moscow food court, sit down at a table, and then order delivery from the restaurant of your choice to your table.  Pretty sure it would work, you would save money, and maybe some time.  And why embark on that arduous expedition to the cash register when you can just sit in a chair and look at your cell phone?

If you try that genius idea, please be sure to let me know how it goes.  As for now, I’m feeling hungry, and if I were to go into the kitchen, I might need to put food into the microwave to warm it up and then put my plate in the dishwasher.  Seems pretty complicated.  I might as well just pick up my phone and see what sales Delivery Club is offering today…