Russian investors play the long-term game

Russian investors are increasingly playing the long-term property game, reveals new research.

Figures from Knight Frank earlier this year found that Russian appetite for overseas property appeared to reawakening, after a period of decline, due to the weaker rouble and economic sanctions placed upon the country. Now, though, Russians appear to be returning to the global property stage. What is motivating them in their investments? Research by Tranio shows that capital growth is now a primary focus, with the majority typically planning to own an investment property for at least five years.

In early 2017, the real estate broker performed its sixth annual survey of Russian/CIS buyers’. Polling 269 realtors from 32 countries to determine which properties Russian/CIS investors prefer to put their capital into and how their purchasing patterns have changed since the Russian economic crisis started in 2014, the report found that Russian buyers now focus mainly on long-term capital maintenance, as well as moderate yields in the medium-term.

Political stability is also a priority, says Tranio, with 25 per cent more survey respondents citing that as a key concern compared to 2013. Indeed, most Russian/CIS investors are now drawn to buy-to-let properties and other simple rental businesses. To become profitable this investment strategy typically requires long-term investments in reliable markets.

 

The return of the Russians?

24th March 2017

The Russians may be returning to the international property market, with new figures showing their appetite has increased in the last two years.

Research by Knight Frank, carried by Russian Construction, shows that requests from Russians for luxury property purchases have jumped 25 per cent in the last two years.

Their budgets have decreased, according to the agents, with their typical budget for luxury residential real estate dropping from 4 million euros from 6.5 million (2014) and from 7.5 million to 5 million. Indeed, they are increasingly focused on investment property, rather than profitability or prestige.

“Taking into account the uncertainties on the world political arena, investors are trying to protect their capital and buy the assets in two or three countries. It is not profitability, but stability and liquidity of the investments that is of high priority for them,” director of Knight Frank Russia Marina Shalaeva is quoted as saying.
 

Russians return to US real estate with renewed appetite

3rd March 2017

The Russians are back in the US of A this year with a renewed appetite for investment, as wealthy buyers from the country dominate international activity in Miami.

Russia outranked all Latin American and International countries searching for real estate in Miami, according to Miami Association of Realtors. This is the second month in a row that this has happened – an unprecedented run of demand from Russian investors.

Some have attributed the rising Russian interest in US property as a knock-on effect of President Donald Trump’s election, as he indicates to Russian investors closer ties between their home country and the USA than the previous Obama administration.

Recent high-profile prime purchases by Russian sporting stars and celebrities in Miami include Aras Agalarov’s purchase of a $10.7MLN Condo at Palazzo Del Sol, Fisher Island, Kirill Stadnikov and Tatiana Zorina snapping up a $10MLN Condo at Oceana, Bal Harbour, Yelena Dudochkin buying a $6MLN Condo at Fendi Residences, Surfside, Russian tourism minister Amir Gallyamov investing in a Condo at Fendi, Surfside and Igor Yakovlev acquiring a $8.7 MLM Condo at Porsche Design Tower, Sunny Isles Beach.

Miami Luxury RE LLC, which specialises in High Net Worth Individuals (HNWIs) primarily from Russia, the UK, Brazil and Canada, argues that the city is becoming the “new French Riviera”, with its beautiful beaches, weather, security, top restaurants, hotels, amenities, and services.

The strength and stability of the US economy and dollar are certainly a factor, as the country is seen as a sturdy safe haven for investment.

Daniel Pansky of Miami Luxury Real Estate says: “Our clients purchase primarily in the $2-$50 million range. We are currently working with several HNWIs from Russia that are looking to purchase Penthouse in Miami in the $10-$50 million range.”
 

Canada and India lead foreign demand for Miami property

17th January 2016

Canada and India are leading foreign demand for Miami property.

New data from the Miami Association of Realtors show that Canada overtook long-time leader Colombia to become the top international country using the realtors’ search portal in October 2016 for the first time since November 2013.

Canadian consumers buy the fourth-most South Florida real estate among all foreign countries. The North American nation registered 7 per cent of all South Florida international sales last year, according to the 2015 Profile of International Home Buyers in Miami Association of Realtors’ Business Areas.

Among all international buyers, Canadians spend the most on South Florida real estate. About 86 per cent of Canadian buyers paid all-cash for South Florida real estate in 2015. Argentina (80 per cent), Brazil (75 per cent) and Venezuela (74 per cent) trailed Canada in cash sales.

“Miami’s tropical weather, resort lifestyle and world-class shopping have long attracted Canadian home buyers,” says Christopher Zoller, the 2017 MIAMI Chairman of the Board.

Indeed, with an average temperature of 75 Fahrenheit, Miami is the only major “subtropical” city in the continental US. In comparison, the average annual temperature in Canada’s capital of Ottawa is 51.62 Fahrenheit.

“With temperatures dropping up north, more Canadian home buyers are purchasing real estate in South Florida,” Zoller adds.

Before the winter arrives in Canada, these “snowbirds” relocate to their Miami and Fort Lauderdale homes and live up to six months here. More than a million Canadians over 55 years old have adopted the “snowbird” lifestyle, spending the winter months in Florida.

“It’s not just Canada,” continues Zoller. “Consumers in states throughout the Northeast are also interested.”

Outside of the USA, Miamia’s foreign appeal remains diverse too. Miami cash transactions comprised 43 per cent of November’s total closed sales, accoring to the Miami Association of Realtors – more than double the national average of 21 per cent. This high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash.

Indeed, the top 10 countries using the Miami realtors’ portal include Brazil, Argentina, Philippines, Spain, France and the UK. Colombia was the second most active national group, after ranking in the top spot for 10 months in a row.

In third place, though, was India, which registered a “notable increase” in searches in October. This is the highest-ever ranking for the country, which previously finished fourth way back in February 2014.

The Miami Association of Realtors promoted South Florida at India’s largest real estate event, NAR-INDIA, at the 8th annual event held in New Delhi last August. Realtors also participated in a FIABCI India program in Bangalore, the center of India’s high-tech industry, in the same month.

India is certainly stepping up its investment in US property. India is now the third-largest foreign buyer of American residential real estate, according to the National Association of Realtors. India spent $6.1 billion on US property in 2016, which trailed only China ($27.3 billion) and Canada ($8.9 billion).

From Miami to New York, see our top US investment hotspots for 2017.

 

Miami property sales stay strong

10th November 2016

Miami property sales are staying strong this year, as it retains its status as a dynamic global city.

Mid-market Miami single-family homes (the $200,000 to $600,000 sector) posted a 10.3 per cent rise in sales in the third quarter of 2016, according to the latest figures from Miami Realtors. 17 Miami neighborhoods registered year-over-year home sales gains.

Total existing Miami-Dade County residential sales — which posted a record year in 2013 and near record years in 2014 and 2015 — decreased 15.3 per cent year-over-year from 7,786 to 6,751 but “remain in line with historical averages”.

Indeed, the area has become established as a popular destination for both expats and investors alike for many years.

“Demand for Miami real estate remains high,” says Mark Sadek, the 2016 MIAMI Chairman of the Board. “Miami has evolved from a beach town to one of the world’s most dynamic global cities. Homebuyers throughout the United States and the world are relocating their families here because of our exciting lifestyle, warm weather, diversified economy, quality schools and multicultural society.”

Supported by strong demand, Miami property prices have now risen 19 quarters in a row, marking almost five years of constant growth.

 

Rising Spanish and Israeli interest in Miami

23rd September 2016

Spanish and Israeli interest in Miami property is rising, according to agents.

Colombia continues to lead all foreign countries searching for South Florida real estate, according to the Miami Association of Realtors.

In July 2016, the South American nation finished as the top international country using the realtors’ online portal, www.Miamire.com, for the eighth month in a row.

Colombians moving to South Florida are often upper-middle-class families who want to enjoy their prosperity earned in their homeland as professionals and entrepreneurs.

Colombian home buyers tied with Argentinians in purchasing the third-most Miami real estate among foreign countries, according to the 2015 Profile of International Home Buyers in Miami Association of Realtors Business Areas. Miami Realtors even made a Miami market presentation at Colombia’s most influential property showcase, the Gran Salón Inmobiliario, in August, which attracted more than 30,000 visitors and 200 exhibitors.

Interest, though, is notably increasing from Spain and Israel, whose searches on the portal both rose in July. For the third consecutive month, Spain ranked among the top-six foreign countries for Miami real estate searches. Spain’s fifth-place ranking in July tied for the country’s highest position in the rankings (also fifth in May 2016). Israel also tied for its highest-ever finish in the MIAMI rankings. Israel had the eighth-most web searches in May 2016.

“It is no surprise Miami is the most searched U.S. market for international home buyers,” said Mark Sadek, the 2016 MIAMI Chairman of the Board. “Miami welcomes and embraces all cultures. From South America to Europe to China to all over the globe, foreign home buyers feel at home in Miami.”
 

Colombians increasingly on the move to Miami

23rd September 2016

Colombians are increasingly on the move to Miami, as the Florida property market shows no sign of losing its international appeal.

Indeed, people from South America have long been top of the buying list in Miami – and now, Colombia is leading the charge. Colombians registered the most global searches for South Florida real estate in February 2016, according to figures from the Miami Association of Realtors’ search portal.

Colombia has now led the rankings for three consecutive months.

“Despite the strength of the U.S. dollar, international home buyers continue to search, buy and invest in Miami real estate,” says Mark Sadek, the 2016 MIAMI Chairman of the Board. “With 51 per cent of its population foreign born, Miami has a unique history of welcoming and embracing all cultures. International home buyers feel at home here.”

Colombians moving to South Florida are often upper-middle-class families who want to enjoy their prosperity earned in their homeland as professionals and entrepreneurs. Indeed, they tend to spend an average of $516,000 on property, according to the Miami Association of Realtors’ 2015 survey, level with buyers from Argentina and behind only buyers from Brazil.

Venezuela and Brazil was the second and third most active searchers for Miami property, with Brazil falling to third place after 13 consecutive months in the top spot. The February 2016 MIAMI statistics also revealed surging interest from the Philippines, the world’s 12th-most populated country, and the United Kingdom.

Nonetheless, Colombia is a significant force in the market, now responsible for 10 per cent of all foreign Miami transactions, according to Realtors.

Indeed, a new exhbition is taking place in Bogotá this month to meet demand from those looking to invest or relocate. The Investir USA Expo aims to attract affluent investors from the area and will take place from 10am to 8pm on Tueday 24th May and Wednesday 25th May at the Bogotá Royal Hotel. Exhibitors from Miami and Orlando will both be present.

“We are limiting this one to 15 exhibitors as we are very focused on reaching a high end investor/ attendee,” event organiser ORB International tells OPP.Today.

“The market with investors from Colombia purchasing in the USA is a very strong one, especially in Miami and increasingly so in Orlando. While the strong United States dollar has had an impact and slowed the amount of investment, it is still a very viable market.”

Around 500 people are expected to attend over the two days.

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