Russian Citizens More Interested in European Real Estate Market

The number of requests for a residence permit (residence permit) from Russian “ultra-highnets” (investors with a wealth of more than $ 30 million) for the acquisition of commercial and residential real estate in Spain rose by 20% in September compared to 2019, Kommersant writes.

In its study, Knight Frank mentions similar facts. They explain that we are discussing items with a budget of more than € 500 000 (43.2 million rubles). The editor-in-chief of the site, Philip Berezin, also discusses the increased demand for real estate “for relocation” in Portugal, Montenegro, Greece, and Cyprus.

“Those who had planned transactions for late 2019 – early 2020 but were forced to postpone them are returning to the market,” he says.

Polina Kuleshova, a representative of Henley & Partners, observed an “unprecedented interest” in European programs for acquiring a residence permit and citizenship, adding that activity among Russian purchasers is currently considerably greater than it was prior to the COVID-19 epidemic.

Ms. Kuleshova connects increasing interest with a decrease in supply, in addition to the execution of delayed demand. According to the expert, there has been a noticeable increase in interest in Montenegro, where the passport program for obtaining citizenship for an invested capital of € 350 thousand (30.2 million rubles) in real estate will be accomplished till the end of 2021, as well as in Portugal, where the circumstances of such a program are planned.

According to Ekaterina Rumyantseva, Chairman of the Board of Directors of Kalinka Group, 80 percent of Russian purchasers’ transactions with premium real estate overseas are, in general, linked to acquiring citizenship or a residence permit.

According to Philip Berezin’s estimations, the proportion of purchasers contemplating real estate “for relocation” in the mass market for investments in foreign assets is less than 50%.