Top 10 countries where Russians are looking for overseas property
In which countries are Russians looking for real estate abroad? Tranio analysts analyzed the statistics of Yandex search queries on residential real estate in different countries from the 2nd quarter of 2016 to the 1st quarter of 2018 to find out which ten countries are the most popular with Russian-speaking users of the service.
Poland closes the top ten most popular among Yandex users for the purchase of overseas property: from mid-2016 through I quarter of 2018, the search engine processed almost 220 thousand corresponding queries. If in 2016 the Polish real estate interested Russians much more than the Czech or French, in the first half of 2017 interest in it dropped significantly. Although it has recently begun to recover, the number of requests processed by Yandex in the first quarter of 2018 is 30% less than in the same period in 2017 – this is the only country whose interest has decreased in 2018.
According to the consulting company Ernst & Young, the Polish property market is growing: for example, in 2017, a record 90,000 new housing units were built. Prices in large cities are growing: in 2017, a square meter in Tricity rose by 15%, Lodz – by 8.5%, in Warsaw – by 8.4%. Demand is ahead of supply – this, coupled with the rising cost of construction, stimulates price increases.
Over the past two years, “Yandex” has processed 240 thousand requests to search for apartments and houses in France. Interest in real estate in France began to grow rapidly in the second quarter of 2017: over the last year, the number of requests increased by 60% – this is a record growth rate among the countries considered.
According to Elena Chernysheva, Tranio’s residential real estate sales manager in France and Italy, Russians most often search for houses or apartments in France for summer holidays or longer stays, up to six months a year. “The most popular regions are the Cote d’Azur, the Alps, many are interested in real estate in Paris. Among the buyers there are those who buy property for rental to tourists. Such investors usually choose large cities where there is no seasonality of business: Nice or Paris, ”says Elena Chernysheva. In her experience, the budget of those who buy apartments for vacation or rental is limited to 500 thousand euros, and buyers of luxury apartments and villas allocate from 1.5 to 5 million euros for purchase.
3. Czech Republic
The Czech Republic turned out to be slightly more popular with the Russian-speaking users of Yandex than France: from mid-2016 to the first third of 2018, the search engine processed 253 thousand search queries related to residential real estate in this country. Interest in the Czech Republic is growing steadily: over the past two years, the number of requests has increased 2.5 times.
According to Inna Opalyuk, Tranio real estate manager in the Czech Republic, Czech real estate is expensive because of cheap mortgages and lack of offers in the market. “Real estate in Prague over the past three years has been growing in price by 5-7% per year, since it is very difficult for developers to get a building permit, it takes several years,” she explains. Therefore, according to her, many Russians prefer to buy real estate under construction: such apartments are about 20% cheaper. Most Russians who buy property in the Czech Republic either send their children to study at Czech universities or plan to move there themselves. The most popular among Russian-speaking city buyers are Prague, Karlovy Vary and Marianske Lazne.
For two years, “Yandex” processed 288 thousand requests for real estate search in Finland. Its popularity is growing spasmodically, but in general, the number of requests by the end of Q1 2018 compared to mid-2016 has almost doubled.
The number of Russian tourists in Finland is also increasing: in 2017, their number increased by 9% compared to 2016, and the number of nights spent by Russians in Finland — by 37%. At the same time, according to the Central Bank of the Russian Federation, the volume of transfers from the Russian Federation to Finland from 2015 to 2017 decreased by 14%.
Interest in residential real estate in Greece began to grow about a year ago: if in the fourth quarter of 2016, Yandex processed only 28 thousand search applications, then in the first three months, 2018 is almost twice as large. In just two years, Russians were interested in buying property in Greece 313 thousand times.
One of the main incentives for buying real estate in Greece for Russians is the “golden visa” program, under which a foreign investor who buys one or several real estate objects with a total value of 250 thousand euros can get a Greek residence permit. According to the information of the official agency of Greece, Enterprise Greece, about 400 investors from Russia took advantage of this opportunity from the launch of the program until the end of 2017. This is one of the cheapest “golden visa” programs in Europe, and in the light of the latest news about the recovery of the Greek economy and the rapid development of tourism, buying real estate in Greece seems to many foreign buyers a profitable investment.