Russians began buying their first villas in Cyprus and Spain in the early 1990s. However, a true market for foreign real estate in Russia formed only 3-4 years ago; earlier it was easier to buy an apartment in Moscow. There are several reasons for this: first, the security of invested funds, and second, good conditions for recreation. Moreover, it is quite difficult to understand which reason is more important when making a purchase.
Head of the foreign real estate department at Payl's Yard, Ella Bratilova, is confident that in most cases Russians buy foreign real estate exclusively for recreation. "In the last couple of years, Miami has become fashionable, and almost all our pop stars have bought villas there," she says. "When Courchevel came into fashion, everyone wanted to buy something there."
She is seconded by Svetlana Skotnikova, a consultant on foreign real estate at Kirsanova Realty. According to her, the most popular properties among Russians are on the French Riviera, in Italy, where Sardinia is in greatest demand. "And in Spain, interest in the Costa Brava coast has recently increased," the consultant adds.
At the same time, the investment attractiveness of these countries is more than modest: over the past six years, prices in Spain have risen by an average of 150%, while in France even less - only 88%. However, there are also their advantages. "A potential investor must understand that despite the great economic benefit, investments in promising areas are quite risky," explains Gennady Tuzov, managing director of the foreign real estate agency Estate Service. "Moreover, there are no conditions for comfortable living."
But such areas are quite suitable for those who invest in foreign real estate for income. According to Tuzov, the largest price increases are provided by actively developing countries. For example, in Bulgaria the average growth in real estate prices in 2004 was 48%, Turkey shows roughly the same profitability, and in Montenegro prices recently grew at a rate of just over 70% per annum.
However, properties in developed countries can also provide a good income. For example, while overall prices in England have risen by only 140-150% since 2000, in the London district of Stratford property values increased by 15% monthly at the end of last year. In the near future, a global reconstruction will begin here, which promises to turn a forgotten wasteland that Londoners were afraid to enter into the Stratford City business center. And according to experts, a 15% monthly income for this area is far from the limit.
It is worth noting that the share of Russian buyers of foreign real estate is still negligibly small. Currently, at least half of foreign buyers in any resort country are the British, facilitated by the developed mortgage lending system in that country, the strong position of the pound against the euro, and the long-standing tradition among the British of buying property at resorts. Next come representatives of northern peoples - the Dutch, Swedes, Danes, and behind them - continental Europe.
Russian-speaking buyers still occupy the last positions on this list. According to Gennady Tuzov, among property buyers in Spain our compatriots account for less than 3%, in Turkey about 10%, in Bulgaria about 15%, and in Montenegro no more than 20%. True, in England and on the French Riviera there are legends about the cost of properties purchased by Russians, but the statistics of foreign real estate sellers refute rumors about the immeasurable extravagance of Russians. About 70% of our compatriots' purchases are quite modest in value - up to €50,000, and only 10% are in the millions of euros. However, as Gzt.ru notes, this means that among Russian-speaking buyers the majority are not super-rich but representatives of the middle class. Therefore, there is hope that their share in foreign real estate markets will grow as soon as the attractiveness of this sector and the domestic real estate market converge.