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Barnes reports on the real estate situation in Russia, which is suffering from the war in Ukraine and disrupted exchange rates.
The conflict between Russia and Ukraine is not without consequences and in a context of free fall of the ruble and rush to banks, Russian buyers are also fleeing real estate in their own country. In fact, in one week, 80% of transactions for sale or purchase have been cancelled and the rest postponed.
Barnes Moscow offices are also noting an increase in requests to invest locally to house cash in solid assets. “Russians have invested heavily in physical gold, crypto-currencies, and are expected to invest in real estate once the fighting stops,” observes Thibault de Saint Vincent, President of Barnes.
The impact of EU financial sanctions
With the freezing of Russian banks’ financial reserves in Europe and the United States, the blocking of the Russian central bank’s access to the capital market and the exclusion from the Swift system, the financial sanctions imposed on Russia by the entire international community are unprecedented. The French Minister of Economy, Bruno Le Maire, in the morning of March 1 on France Info, estimated that the value of Russian assets that will be frozen is “almost 1 trillion dollars”.
“At the international level, it is still too early to make a precise diagnosis, but Russian assets will be massively put up for sale in Western Europe. They will now look at Dubai, Turkey, Asia and possibly Africa to make their investments,” says Thibault de Saint Vincent. “The economic result of the sanctions cannot be assessed at this stage and we must wait for the “digestion” of these measures, particularly by the banks, before understanding their true impact at the local and international levels.”
Since the annexation of Crimea in 2014 and the first sanctions against certain oligarchs, Russian buyers were much less present in France and in the posh resorts like Courchevel or Megève. They have since given way to French people returning from abroad, and, since the borders are open again, to Lebanese, Europeans (Germans, Belgians and Swiss) and North Americans. “The Russian clientele today represents less than 0.5% of our transactions, or 7 to 8 transactions per year in the segment of properties over 5 million euros. The decline of this clientele in recent years has been so strong that we now have more Russian sellers than buyers in France” explains Thibault de Saint Vincent.
Read also > MIAMI AT THE TOP OF LUXURY REAL ESTATE ACCORDING TO BARNES
Featured photo : © Barnes Moscow[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
Barnes reports on the real estate situation in Russia, which is suffering from the war in Ukraine and disrupted exchange rates.
The conflict between Russia and Ukraine is not without consequences and in a context of free fall of the ruble and rush to banks, Russian buyers are also fleeing real estate in their own country. In fact, in one week, 80% of transactions for sale or purchase have been cancelled and the rest postponed.
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Barnes reports on the real estate situation in Russia, which is suffering from the war in Ukraine and disrupted exchange rates.
The conflict between Russia and Ukraine is not without consequences and in a context of free fall of the ruble and rush to banks, Russian buyers are also fleeing real estate in their own country. In fact, in one week, 80% of transactions for sale or purchase have been cancelled and the rest postponed.
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