Anna Smirnova
RIA Real Estate Columnist
RIA Real Estate Columnist
Gorkhiyan Realtor: Russians are buying up real estate in Asia due to the weak ruble
The demand of Russians to buy real estate abroad in 2024 decreased by 6% compared to the previous year, Thailand became the leading destination, market participants told RIA Real Estate. This year, they believe that interest in purchasing real estate in Asian countries will continue, including due to the weakening of the ruble exchange rate.
The leader has changed
According to Tranio analysts, the demand of Russians for the purchase of foreign real estate decreased by 6% in 2024 compared to 2023, but in the long term it showed higher results (+16% by 2021).
"About 55% of buyers are currently choosing real estate abroad for investment purposes. These are countries such as Thailand, Bali, and the United Arab Emirates. Immigration purchases account for about 45% of demand, such an audience is interested in Turkey and European countries: France, Italy, Cyprus, Portugal," says Irina Mosheva, Managing Partner of Intermark Global.
Irina Mosheva
Managing Partner of Intermark Global
Managing Partner of Intermark Global
In 2024, the configuration of the leading destinations in terms of demand from Russians changed – Thailand, the United Arab Emirates and Georgia remain in the top, but with a redistribution of market shares, Tranio cites. Thailand strengthened its position with a share of 14.7% of total demand, surpassing Georgia (13.6%), which was previously popular with relocators due to the low entry threshold of 35 thousand dollars. The UAE, on the contrary, showed a decrease in interest: the share of applications decreased from 9.6% to 7.5%.
Turkey accounted for the main reduction in demand in the top ten countries – due to a sharp increase in real estate prices, the decrease in the indicator for the year was 25%. According to Tranio, this country now ranks only seventh in the list with a 5.6% share.
Turkey accounted for the main reduction in demand in the top ten countries – due to a sharp increase in real estate prices, the decrease in the indicator for the year was 25%. According to Tranio, this country now ranks only seventh in the list with a 5.6% share.
Facing Asia
The growing interest of Russians in buying real estate in Southeast Asia, primarily in Thailand, deserves special attention.
"It is explained by the weakening of the ruble exchange rate – by buying real estate in the region, Russians want to diversify their capital," explains Olga Gorkhiyan, head of Floors Indonesia.
Olga Gorkhiyan
The head of the company "Floors Indonesia"
The head of the company "Floors Indonesia"
In Thailand, according to Tranio, the share of buyer applications for investment property reaches 75%. According to the company, the number of applications for the purchase of real estate here from Russians has increased by almost 40% over the year. Compared to 2022, when there was a rush, this figure increased by more than 2.5 times and jumped sixfold to the level of 2021.
A window to Europe
As for the European market, Russian real estate buyers are being held back by visa restrictions for Russians and political risks, said Valery Tumin, Director of Russian and CIS Markets at Fam Properties.
Despite the fact that France, Spain and Greece remained in the top ten countries in terms of demand from Russians in 2024, this figure for the year, according to Tranio, decreased by 10, 17 and 19%, respectively.
Despite the fact that France, Spain and Greece remained in the top ten countries in terms of demand from Russians in 2024, this figure for the year, according to Tranio, decreased by 10, 17 and 19%, respectively.
However, Cyprus was one of the exceptions, with a 15% increase in demand in 2024. Tranio analysts note that this indicator has reached its maximum value in five years of observations.
Cyprus has been systematically working to create an image of one of the largest IT clusters in the region and building up the base to attract international companies and startups: a corporate tax rate for the IT sector of 2.5%, no tax on dividends and interest, simplified visas for startups, accelerated citizenship procedure for employees of IT companies, and so on. All this has consolidated the island's status as a major relocation center in Europe, says Dmitry Bozhkov, head of Cyprus at Tranio.
"Another important factor for the growing popularity of buying real estate in Cyprus has been the prospect of the republic joining the Schengen area. The possibility of signing the agreement was actively discussed throughout the past year, and its implementation is tentatively scheduled for 2025," he adds.
Apartments and townhouses
In Thailand, Russian buyers often choose apartments and condominiums in coastal areas, says Viktor Sadygov, owner of the Nika Estate real estate agency, adding that the average price of real estate per square meter here is about 3 thousand euros.
In Indonesia, in 2024, Russians most often invested in apartments or townhouses, Gorkhian says. The average check for such real estate is $135 thousand per unit.
The entry threshold for the purchase of real estate in the UAE (mainly Dubai), according to Poletskaya, is 150 thousand dollars. You can buy a studio for that price.
In Indonesia, in 2024, Russians most often invested in apartments or townhouses, Gorkhian says. The average check for such real estate is $135 thousand per unit.
The entry threshold for the purchase of real estate in the UAE (mainly Dubai), according to Poletskaya, is 150 thousand dollars. You can buy a studio for that price.
"But mostly it is not often that people in Dubai buy real estate to obtain a residence visa – for this they need to invest about 200 thousand dollars in real estate," Sadigov estimates.
Victor Sadygov
Owner of the Nika Estate real estate agency
Owner of the Nika Estate real estate agency
In Turkey, Russian citizens most often purchased residential properties in tourist locations, considering them as a remote cottage for personal residence, says Anna Larina, director of the Department of foreign real estate at NF Group. In this country, the threshold for entering the market, according to Sadygov, starts from 150,000 euros for business-class real estate in new buildings. With an investment of 400 thousand dollars or more, it becomes possible to obtain citizenship.
According to Bozhkov, Russians in Cyprus have the most demand for rental real estate – new apartments in popular areas closer to business centers, with convenient transport accessibility, high ceilings, underfloor heating and energy efficiency class A. The most frequent budget for buying real estate in this country is 300 thousand euros. At the same time, in a good family area of Limassol, Cyprus' most expensive city, the starting point for searching for similar apartments will be 400,000 euros, Bozhkov says.
The customer is getting younger
The portrait of a Russian buyer of foreign real estate, according to the observations of market participants, has not undergone significant changes in 2024. But there are some nuances.
"For example, if earlier the main clients in the European market were people over 45 years old, now more and more requests are coming from younger clients aged 30-35," Irina Savchenko, a real estate broker in Berlin, shares her observations.
Irina Savchenko
Real estate broker in Berlin
Real estate broker in Berlin
A similar trend is noticeable in the Asian market, Larina adds. Such relatively young people had previously purchased apartments, houses and townhouses in Moscow, and now they are entering the Thai and Bali markets with small amounts.
"If we talk about the distribution of demand within Russia, residents of Moscow remain the most active buyers – they provide more than a third of all transactions with foreign real estate," adds Alexey Kotlov, CEO of the CMP Group real estate agency.
Residents of St. Petersburg, according to him, took the second place with a share of about 10%. This is followed by the Krasnoyarsk Territory, Krasnodar Territory and Sverdlovsk Region.
In addition, there are more people who take out mortgages to buy foreign real estate, says Olga Poletskaya, CEO of Colife Invest. For example, in Dubai, many Russian citizens began to take advantage of the opportunity to enter mortgage programs when buying real estate, taking into account the rate of up to 4% per annum.
Residents of St. Petersburg, according to him, took the second place with a share of about 10%. This is followed by the Krasnoyarsk Territory, Krasnodar Territory and Sverdlovsk Region.
In addition, there are more people who take out mortgages to buy foreign real estate, says Olga Poletskaya, CEO of Colife Invest. For example, in Dubai, many Russian citizens began to take advantage of the opportunity to enter mortgage programs when buying real estate, taking into account the rate of up to 4% per annum.
The leaders will remain
In 2025, the weakening of the ruble and the search for stable assets will support the demand of Russians for foreign real estate, Tumin expects.
"Since we received a new round of dollar exchange rate growth only at the end of the year, we will see the effect only in this. Of course, this situation will affect people's desire to save their capital in some alternative way to deposits," Sadygov agrees with him.
Victor Sadygov
Owner of the Nika Estate real estate agency
Owner of the Nika Estate real estate agency
At the same time, the risks of economic and geopolitical instability may limit the choice of areas for buying real estate, Tumin warns.
In his opinion, Thailand and Indonesia will remain leaders in demand from Russian citizens this year due to their good profitability. Georgia will continue to attract Russians with a low entry threshold, and Europe can strengthen its position by increasing interest in residence permit programs.
In his opinion, Thailand and Indonesia will remain leaders in demand from Russian citizens this year due to their good profitability. Georgia will continue to attract Russians with a low entry threshold, and Europe can strengthen its position by increasing interest in residence permit programs.