Page 31 - RusRPTApr24

Russians with an anti-war position to set fire to military registration and enlistment offices and other objects related to the attack on Ukraine.
2.12 Russian demand for foreign real estate is falling
There are fewer and fewer people wishing to leave Russia, regardless of the cost. In the first quarter of 2024, Russians’ demand for foreign real estate fell by half, primarily due to difficulties with money transfers abroad and the weakening of the ruble. But this does not apply to Europe: the demand for real estate in EU countries remains stable, no matter what.
In January-March 2024, the number of applications for the purchase of foreign real estate decreased by 50%, the Prian.ru portal calculated. International luxury real estate agency Barnes International Moscow estimates the decline at 20%. The sharpest decline is observed in two directions - Türkiye and the UAE.
Historically, the largest destination in terms of transaction volume for Russians is Türkiye. But at the end of last year, she raised the threshold for obtaining a residence permit for the purchase of real estate from $50–75 thousand to $200 thousand. In addition, the country is in a state of economic crisis - the Bank of Turkey raised the key rate to 50%, and the lira exchange rate is fluctuating at historical lows. As a result, the number of transactions with Turkish real estate has decreased by three times.
The Russians themselves have no less difficulties: at the beginning of 2023, the dollar and euro cost 70–75 rubles and have since risen in price by a third. In addition, Russians have lost access to international payment systems, and most banks are under sanctions. This has significantly complicated the transfer of money abroad.
The second most popular destination is the UAE. Demand there is also falling: Elena Milishenkova, director of development product at the Tranio agency, told Kommersant that the number of client applications for the Emirates has decreased by 25.8%. In 2022-2023, purchases in the UAE were mainly of an investment nature, and now the Russians have switched to neighboring countries (Oman, Qatar and Saudi Arabia), as well as Thailand, which now accounts for 17.8% of all applications.
At the same time, demand for real estate in Europe remains stable, experts say. Taking into account the contraction of the market, Europe’s share in it over the year increased from 15–20% to 35–45% of the total volume, Prian.ru editor-in-chief Philip Berezin told Kommersant. Experts note an increase in the share of investment transactions: Russians view foreign real estate as a potential source of income in dollars and euros.
What's in it for me? Discouraging Russians from traveling and investing in Europe will be difficult, although both Russian and European authorities are making unprecedented efforts to do so. The tourist flow to Europe, despite the rise in ticket prices and the complexity of the route, is also gradually growing.
31 RUSSIA Country Report April 2024 www.intellinews.com