Russian nationals make remarkable comeback in global real estate market
Date
11/28/2023 2:08:16 AM
(MENAFN) In a recent development, Russian nationals are making a significant comeback in the international Real estate market, with a particular focus on European Union (EU) member states such as Hungary and Greece, according to a report by consulting firm NF Group. The data, spanning from January to October 2023, reveals a growing trend of Russian citizens opting for property acquisitions in Hungary, Greece, Cyprus, Indonesia, and Turkey.
A noteworthy revelation from the report is that 61percent of Russians engaging in real estate transactions abroad have the primary goal of obtaining residence permits or citizenship. This motivation, particularly evident in Hungary and Cyprus, is attributed to the simplified procedures these countries offer to real estate buyers seeking residency.
Hungary, in particular, stands out with a scheme enabling foreigners to secure a residence permit by investing in property valued at EUR215,000 (USD233,560) per family, with a remarkably short registration period of up to two months. In comparison, Cyprus and Spain require property investments of EUR300,000 and EUR500,000, respectively.
Anna Andreeva, Head of the Foreign Real Estate Department at NF Group, emphasized the attractiveness of Hungarian property for investment, citing the more than doubling of housing prices since 2010. Furthermore, renting out property in Hungary presents a lucrative opportunity for investors, potentially boosting income by up to 6 percent in foreign currency.
Interestingly, the report also highlights a noticeable increase in the number of Russians purchasing homes for both investment purposes (20 percent) and personal residence (17 percent) compared to the previous year. This surge in demand is primarily driven by affluent Russians who perceive real estate acquisitions as a strategic avenue for securing free movement within the European Union. This shift in behavior comes in the wake of sanctions imposed on Russia last year, prompting wealthy citizens to explore avenues that facilitate greater mobility within the European bloc.
As the Russian appetite for international real estate intensifies, European Union nations, especially Hungary and Greece, emerge as focal points for property investment, driven by the allure of residency benefits and attractive investment opportunities. The landscape of European real estate markets is witnessing a dynamic shift as Russian buyers navigate the post-sanctions era, seeking not only financial returns but also strategic advantages in the form of residence permits and citizenship.
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