Trampoline in Russia: in early November it became known that Donald trump has won the US presidential election, the Russians began actively buying U.S. real estate. In November, the number of queries from brokers increased by 35%, according to consulting company Knight Frank. “What now is significantly positive moment in us-Russian relations, has aroused the interest of wealthy Russians to luxury real estate in new York and Miami,” says Marina Kuzmina, Director of Department of foreign real estate Knight Frank.
“Some customers are interested in opportunity to purchase a property in construction projects of Donald trump.” But the Kremlin, apparently, no objection. In his address to the Federal Assembly in early December, President Vladimir Putin expressed willingness to cooperate with the West. Russia does not seek confrontation, the country is looking for friends, Putin said. Putin was referring to the then elected President of Donald trump, with whom he had previously talked on the phone, and the sides were unanimous in the opinion that it is necessary to fix bilateral relations.
And trump during the election campaign announced a new policy towards Russia. If he was invited trump, he’s going, Putin said Friday at the annual press conference. So do wealthy Russians to look at the particular residential facility in the United States. Conversely, real estate professionals in the U.S. interested in cooperation with Russia, said Kuzmin. According to her, the trend has changed.
Last year, when economic sanctions began to have its effect, and with the fall in oil prices, the Russian economy showed a decline of 3.7%, fell and demand for luxury properties. America, which until 2014 was constantly among the five most popular countries for the purchase of real estate among Russians, suddenly disappeared from the top ten.
But it was connected not only with the political developments in relations between Russians and Americans. It was connected with the rouble due to falling oil prices lost more than half its value. Shopping abroad became suddenly twice as expensive.
Therefore, the demand on the part of the Russians making a slow recovery. The amount they are willing to pay for the property in the United States, much lower than it was prior to 2014. According to Knight Frank, the majority of Russians until 2014 considered buying real estate in the most attractive U.S. cities cost five million dollars of the transaction value from 15 to 20 million dollars were not uncommon. Now 90 percent of all requests correspond to a segment from 500 thousand up to five million dollars. The greatest demand is for small apartments or studios. Large apartments and penthouses costing from four million dollars make up only a quarter of queries.
However, now it is not clear, whether will buy your property. Since in total for last months figures the purchase of foreign real estate by Russians fell to a low of eight years ago, the newspaper “Kommersant”, citing data from the realtors. Data are based on information of the Central Bank, according to which in the third quarter of 2016 as a result of transactions with real estate abroad received only 229 million dollars, which is 60% less than two years ago.
For the first nine months of this year, the amount was 16% below last year’s figures. However, experts point out that the statistics cover only part of the transaction, because many Russians pay for their foreign purchases with foreign accounts. But the trend does not change. First of all, traditionally a big interest in real estate in foreign resort areas will continue to decrease in 2017.
However, the interest of Russians will be saved to the two countries along with the USA, Turkey and Bulgaria. The share of sales of houses and apartments in Bulgaria for over a decade high, as with the Russians acquire real estate and freedom of movement in the EU. According to official Bulgarian statistics, 2006 real estate in Bulgaria has acquired more than 73 thousand Russians. In the past year, the Russians stood on the first lines among the buyers.