Russian Residential Real Estate Buyers Look to Europe
Russian real estate buyers searching for the best returns are increasingly focusing their efforts on European property, it has been claimed.
Speaking to the Moscow Times, IntermarkSavills has revealed that the most targeted destinations include Britain, Austria, France, Switzerland and Germany. Buyers are attracted to these countries because of their stability and relative low level of risk Igor Indriksons, head of the international investments department at the firm, said.
He continued, adding that investing in real estate in Europe is much more profitable than in Russia. The annual returns on rentals tend to be between five per cent and 12 per cent compared with 3.5 per cent to four per cent in Moscow, Mr Indirksons said.
Meanwhile, the behavior of Russian buyers, who previously chose overseas properties based on their personal preferences, has begun to change. More people are now selecting real estate based on its ability to bring rental revenue.
"Russians were trying to combine incompatible things at first - a good investment and a convenient home for themselves," Indriksons said.
His comments are echoed by those of Stanislav Zingel, president of international real estate agency Gordon Rock, who told the news provider that a growing number of Russian buyers are purchasing property abroad with the intention of turning a profit through rental.