Russians Choose Most Expensive Real Estate Abroad Despite Crisis
Luxury residential property abroad is still popular with Russian-speaking buyers according to Tranio's upcoming report on Russian and CIS Buyer Activity in 2015
Moscow, Russian Federation, November 24, 2015 (Newswire.com) - Not all Russian-speaking property buyers have been tightening their purse strings in 2015 and luxury foreign real estate still draws big budgets according to Tranio’s upcoming report on Russian and CIS Buyer Activity in 2015. However, while 90% of these investors are still paying above market rates for residential property, spending on commercial real estate is low-key and profit-driven.
• Prime residential property gets biggest investments in expensive countries
The more expensive the country, the more Russian and CIS buyers will spend on residential property is the main conclusion of this Tranio report. These buyers outbid the local average budget in all but two out of twenty top investment destinations.
Yulia Kozhevnikova, Real Estate Expert at Tranio.com
• Low/medium budgets destined for foreign commercial real estate
• UK, France and Switzerland have highest spending compared to local budgets
• Cheapest property markets see lowest spending and smallest budgets
• +440% spending over local average for residential property in Switzerland
• –70% spending under local average for commercial property in the UAE
Preferred locations for Russian prime property seekers are amongst the most expensive in Europe: London and Surrey in the UK, Paris and the French Riviera in France, Geneva Lake and in Alpine resorts in Switzerland.
In the lowest budget segment however, Russian and CIS buyers spend between €60,000 and €75,000 per property on average – just 10% more than the local average budget in the three cheapest countries: Bulgaria, Hungary and Turkey.
In contrast, only 30% of these clients pay above-market rates for commercial property where activity reflects a mature outlook on future revenue. Easier access to credit in Europe has allowed Russian and CIS buyers to leverage their investments, improving yields and safeguarding their assets from the economic downturn at home.
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