Welcome!

News Feed Item

2014 Russian Property Investment in Europe - The Facts

FARO, Portugal, April 1, 2014 /PRNewswire/ --

Algarve property website Meravista has conducted an extensive analysis of Russian buying trends. They have produced a report which exposes the truth about what, where and why Russians are investing in European property and highlights what Portugal and other countries could be doing to increase their market share.

     (Photo: http://photos.prnewswire.com/prnh/20140401/677971 )
 

Russian interest in real estate, both domestic and abroad, has increased steadily over the last decade. However, this has led to a lot of conjecture among European estate agents. The western mentality creates the assumption that the typical Russian buyer will be spending an extravagant amount of money in the sunniest possible destination, with a keen interest in new citizenship. Meravista's research reveals that this is far from the reality.

Meravista has reviewed Russia-originated reports, research, websites and internet search almost exclusively, to develop a report based on the Russian perspective of buying habits, rather than the West's perception of why, what and where this nation is investing its money.

The investment buyer 

Meravista's research shows that the key priority for Russian buyers looking to invest in foreign property is stability, making the UK the current number one choice, with Germany and France following closely behind. Affluent Russians seeking profit and status, account for 20% of all non-resident property purchases in London and Paris with an average budget of 5.5 million dollars.

Applying the same rationale of stability, Bulgaria, Spain and Portugal are considered the worst picks currently for investment due to economic uncertainty. However, analysts also acknowledge that the rock bottom prices of real estate in Spain and Portugal are actually a great opportunity to buy. They merely caution that it may take 3 to 5 years before prices rebound to allow a sale for profit. This appears to be a more realistic take on the majority of Russian property purchases.

The holiday home buyer 

More than half of all Russian purchases are for a second home.

Along with the recent spread of wealth in Russia, the nation's 'Life in two houses' tradition of owning dachas (summer houses) in the countryside has reached the middle class. The difference today is that Russians are now enjoying the opportunity to have their dacha in a foreign country. Typical price ranges preferred by Russians, are between €100,000 and €200,000 regardless of country.

More than 95% of all purchases involve the Russian buyer retaining his or her existing home in Russia. This indicates that residency and citizenship in the EU does not appear to be an objective for the majority. That being said, the recent crisis between Ukraine and Russia has seen a large increase in UK property inquiries from wealthy Russian buyers seeking the possibility of relocation to avoid the consequences of economic isolation by the West.

When Meravista surveyed agents in the Algarve, asking whether they had dealt with Russian buyers in the past 15 months, it received a mixed response. The majority reported few or no enquiries from the Russian market. A few said that the Russian clients were here to take advantage of the Golden Visa programme.

Where they are putting their money 

Portugal's Agency for Foreign Investment and Commerce (AICEP) lists Russia as the 21st out of 55 listed countries making direct investment in Portugal. The leading property portal in Russia, Prian.ru, reported the top 30 countries Russian buyers went for in 2013. Bulgaria, Spain and Germany topped their list with Portugal ranking 20th overall and the UK 22nd. Prian.ru's numbers, however, are merely a reflection of the inventory of that portal.

A more democratic approach is the measure of search volume for foreign property on Yandex.ru, Russia's largest search engine with a 60% share of the search market in that country. Using a Cyrillic broad term search on Yandex.ru for real estate and country, Meravista finds the actual interests of Russians to be somewhat different, with Bulgaria and Spain still on top but Portugal ranking 15th overall and the UK 32nd.

Even though Spain and Portugal share similar economic problems, culture and geographic location, the Russian public prefers Spain vastly more than Portugal. This is in spite of, as reported by Meravista, the reality that the cost of Portugal property is much lower than Spain's. The reason that buyers are targeting Spain, is the property listing saturation of Spain, Bulgaria and all other front runners in the property portals of Russia such as Prian.ru.

Russian property portals are dominated by the listings of estate agencies from countries who have taken the initiative to broadcast their properties there. Portugal is not one of those countries.

Meravista is currently listing over 14,000 properties for sale in the Algarve. Nearly 6,000 of these fall within the €100,000 to €200,000 price range. This alone indicates an opportunity for Portugal to target Russian buyers. But, for Portuguese estate agents, or any other country's agents for that matter, to succeed in the Russian market with its new wealth, a demand must be created where none currently exists.

About Meravista 

Meravista is the world's largest property portal devoted exclusively to the Algarve. It brings visitors the latest state-of-the art search technology, making it easy for to find their perfect property in the Algarve.

Property buyers can search for their retirement Quinta in Tavira, luxury villa in Quinta do Lago, a second home in Lagos or a beachfront apartment in Vilamoura.

They can choose their favourite location on the map, select their desired criteria, and see the Algarve properties that fit the bill:

  • View maps, listings and property details at the same time
  • Over 300 standardised property details
  • Compare properties side by side
  • Save favourite properties and searches

http://pt.meravista.com/en/home

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Archi...
Digital transformation has increased the pace of business creating a productivity divide between the technology haves and have nots. Managing financial information on spreadsheets and piecing together insight from numerous disconnected systems is no longer an option. Rapid market changes and aggressive competition are motivating business leaders to reevaluate legacy technology investments in search of modern technologies to achieve greater agility, reduced costs and organizational efficiencies. ...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
For far too long technology teams have lived in siloes. Not only physical siloes, but cultural siloes pushed by competing objectives. This includes informational siloes where business users require one set of data and tech teams require different data. DevOps intends to bridge these gaps to make tech driven operations more aligned and efficient.
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.