Page 211 - RusRPTAug24

budget for a primary market transaction has increased by about the same amount, to 137 million rubles. Prices on the secondary market are stable — 800 thousand rubles per square meter.
The market clearly sees this as a result of capital repatriation by wealthy Russians due to sanctions and the associated difficulties with servicing real estate in the EU. The boom began in the third quarter of 2023 and is still ongoing, says Ekaterina Rumyantseva, founder of the elite real estate agency Kalinka.
Moscow still accounts for 70-80% of the elite, with St. Petersburg and Sochi providing almost all the rest. The second source of demand growth — although noticeably inferior to the first — is the move to Moscow of regional businessmen and their families. Perhaps, among them are people who have already become rich on military orders.
Russians have become less likely to invest in real estate abroad, writes Kommersant. In the first six months of 2024, demand decreased by 30–35%, and the average cost of investment fell from $300–500 thousand to $200–300 thousand per property.
The drop was driven by two of the most popular destinations: Turkey, where the investment threshold for obtaining a residence permit was significantly increased, and the UAE, where due to increased demand prices increased by 20% last year. The number of requests to purchase housing in these countries has halved. The specialized agencies told Kommersant that some buyers have already solved their immediate immigration problems, while others have taken a break and switched to real estate inside Russia. However, demand in other areas remains high.
Russians' interest in real estate in Europe increased by 30% in the first half of the year. The leading countries are Bulgaria and Hungary, which came into second place after the launch of the golden visa program. Montenegro, Cyprus, Spain and France also remain in demand.
Russians are attracted to the countries of Asia and the Middle East by favorable conditions. In Thailand, where demand has grown by 64%, relatively inexpensive properties ($120-160 thousand) can generate 7-8% of annual rental income. A simple purchase procedure and the expectation of rising prices also increase Russians’ demand for housing in Oman, Qatar and Bahrain.
9.1.5 Retail sector news
211 RUSSIA Country Report August 2024 www.intellinews.com