Russian Recession Stimulates Commercial Property Investments Abroad
Russian and CIS investment activity abroad has been significantly weakened since late 2014 but commercial property is not suffering as much as demand for residential real estate.
Moscow, Russian Federation, December 1, 2015 (Newswire.com) - Commercial property is more attractive than residential to Russian-speaking property buyers amid the recession in Russia. Results of this survey by Tranio show that, while overall demand has decreased around the world, these buyers are turning to yield-generating real estate in a bid to secure their assets in uncertain times.
Key aspects
• Russian property buyers drying up according to 74% respondents
• Only UK and Hungary property still popular in Google search results
• Commercial property interest rises in previous residential hotspots
• Yields and stability are key factors for Russian/CIS property purchases
Once touted as the most opulent of investors in the world’s most expensive cities, the great fall of the Russian ruble, leading currency in the ex-USSR, along with the Ukrainian hryvna and Kazakhstani tenge, has greatly affected their investor activity abroad
The results of Tranio’s upcoming survey, and investor interest in particular, are part of a larger trend in BRICS countries. Russian and CIS investors are moving their funds abroad amid instability at home, looking to secure the value of their assets and focusing on reliable revenue.
Political and economic stability are key motivating factors when investing overseas following the recession in Russia, one of the world’s most powerful nations, and countries in its area of influence.
Tranio experts expect these trends to persist until the Russian economy improves with modest investor appetites and weak transaction volumes. The full report will be released in January 2016 and is available on request.
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