Despite the growing isolation of Russia in International foreign affairs, new figures show that the appetite among the Russian people for holiday properties remains undimmed.
The figures published by the country’s central bank have revealed an increase in foreign property purchases in Q3 2015 which was the first rise since the first quarter of 2014.
Despite this positive news storm clouds are gathering due to a weak ruble and Russia’s ongoing problems with economic sanctions. A major diplomatic row with Turkey over the shooting down of a fighter jet did little to help relations with that country. Turkey has long been a major destination for Russian overseas property buyers.
Data released by the central bank includes:
– a 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
According to overseas property firm Tranio, Russians traditionally buy more property overseas during the final quarter of every year. 2014 proved to be an exception with 2015 reverting back to the long term trend.
Analysts at Tranio say there is no guarantee foreign real estate markets will see a similar rise at the end of 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 the international property broker.