Slight Growth for Russian Overseas Property Investments in Q3 2015

Moscow, Russian Federation, December 17, 2015 (Newswire.com) - Foreign property purchases by Russians rose for the first time since the spring 2014 according to the Central Bank of Russia. Russians spent more on property in Q3 2015, according to the same report, but this quarter’s weak ruble leaves future growth in doubt.

Key aspects:

"I believe that next year will bring another decrease in residential real estate transactions proportionate to the ruble exchange rate, but buyers of foreign income-generating property should increase gradually"

George Kachmazov, managing partner and real estate expert at Tranio

            •   1,7% increase foreign property purchases

            •   $6 billion total outbound remittances  

            •   spending still far below pre-crisis activity

            •   stark differences between property and overall investment destinations

Traditionally, Russians buy more property overseas during the final quarter of every year, except in 2014, but there is no guarantee foreign real estate markets will see it this year.

"This can hardly be called ‘real growth’, it is rather about the market stabilising. I think this is due to the growing interest of Russians in buying income-generating property abroad. The majority of commercial real estate transactions happen outside the Central Bank’s reach and their statistics, as most clients finance their purchases with funds held on foreign accounts", says George Kachmazov, managing partner at Tranio, international property broker.

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