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The Russians are here! The Russians have emerged as the biggest buyers of UK properties recently and there has been no let up in the volume of Russian investment in London and UK despite the deep economic trouble that the country finds itself in.
Russians were, in fact, responsible for most of the property purchases in the UK after UK buyers with a strong focus on super-prime or luxury properties worth £10 million or more. Sales of luxury property to Russians have risen by 10% this year.
There are many reasons for Russians to seek out properties in the UK. Many wealthy and upper middle class Russians have been looking to divert a part of their financial assets out of Russia because of the precarious state of the Russian economy.
The Russian economy has been hit severely by the sanctions imposed by the US and other Western nations because of its aggressive behaviour in Ukraine. This combined with falling oil prices have been costing the Russian economy around $140 billion a year.
The ruble has declined in value quite alarmingly, and today trades at 27% of its value against the dollar just a year ago. This has led to a rush of Russian investments into the UK and other countries in Europe.
London is hugely popular with Russian buyers. It is their favourite city to live in the whole world and a London address is considered very prestigious. Indeed, the UK is considered a safe haven for their investment despite Brexit.
In fact, Brexit has only encouraged more wealthy Russian (and Chinese) investors to buy properties in London because real estate prices here have dropped significantly because of the decline in the value of the sterling.
As Gary Hersham, founder of Beauchamp Estates reveals in an interview with The Telegraph, "I currently have half a dozen Russian clients urgently looking to spend over £20m each on buying a new home in central London. For them the address must be Belgravia, Knightsbridge, Mayfair and Regents Park, it's got to be a prestigious postcode and ideally a park side or leafy address.”
"Previously it was all end use real estate, but now that their commercial ventures in Moscow have slowed, they are seeing London real estate investment as a commercial opportunity, so like the Chinese they are now starting to purchase rental investment property and commercial assets, this has not been seen before in London by them in large numbers," Mr. Hersham adds.
Russian investors are not necessarily abandoning Russia. Russia remains very dear to them and most fly back and forth between London and Moscow quite frequently. However, there is no mistaking the Russian interest in London and the rest of the UK.
The most popular London addresses for Russian investors are Kensington Palace Gardens, the Knightsbridge Apartments, One Hyde Park, Holland Park, Belgravia and Mayfair.
What’s also interesting is that it’s not just the oligarchs or the Russian billionaires who are snapping up properties in London and the UK.
If you want to sell UK property to cash rich overseas Russian investors contact us today,