Purchasing power of the Russians in Europe decreased in recent 2-3 years. The premium segment of London fixed insignificant decline, but it is still there. Also an interest in expensive homes on the Mediterranean Sea, in the south of France (Cote d'Azur), in the Italian resort of Forte dei Marmi and the Lake Como has decreased. If earlier the Russians were buying objects for €10-15 million, today they are interested in villas in the up to €5 million segment. However, a demand for investment projects in Germany, Spain or particularly in Barcelona, Munich and Berlin has increased. These trends were noted by James Price, Partner and Director of International Sales of new buildings at Knight Frank in an interview with RIA "Novosti", reports the ee24.com.
"Generally, wealthy buyers are often looking for safety, but for the Russians it is just one of the key factors and the choice of places for home purchase may be largely explained by this factor. For example, buyers from Russia and CIS countries like Monaco, partly because of the tax system, or partly because it is a very safe place. They like Vienna, as it is quite easy to stay incognito there; in Vienna you can walk around the city without being disturbed. As for the premises parameters, the Russians are interested in high ceilings and plenty of space inside. Buyers from different countries have similar criteria in many respects, but the high ceilings are exclusively Russian feature," said James Price.
According to the expert, the activity of the Russians at the leading European real estate markets declined after the crisis of 2008, when cautious was at the first place in decision making. Now rich Russians as well as investors from other countries spend smaller amounts on their second homes, if compared with previous pre-crisis years. According to Price, in market general, buyers from different countries have become less wasteful. Now only every fifth elite real estate buyer in the world is willing to spend more than €2 million, whereas five years ago is used to be every second one!