A growing number of Chinese investors are turning to the Cypriot property market, catching up with Russian buyers.
The island’s Golden Visa scheme, in addition to its recovering economy, is helping to attract investors to the country.
“Chinese investors are fast catching up with Russians when it comes to Cypriot passports,” a finance ministry source told Cyprus Weekly.
While Russian investors are typically more notable in their presence on the island, due to an established community, Chinese investors are a far less common sight in Cyprus.
“Most of the Chinese businessmen are already well-established in a world metropolis like London, so some of them do not even intend to make a serious use of their property even as a holiday resort,” one agent told the paper.
Nonetheless, Chinese investors are an increasingly important part of the island’s economy and real estate, with a consortium planning a five-star hotel in Famagusta and Melco, based in Macau, eyeing up the island’s first casino resort.
Rising Russian interest in Dubai real estate?
10th August 2016
Photo: John Leach
According to property portal PropertyTrader.ae, there was a “significant” climb in the number of Russian visitors to the site in the first half of 2016.
Russia has “always been a key market” for the emirate, notes the portal, although the country’s investment in overseas real estate has declined in recent years, due to the devaluation of the rouble. Agents in Cyprus, though, have reported strong interest from Russian buyers this year.
“As we looked at the statistics for the first six months of 2016, we noticed a definite increase in visitors from Russia looking at homes for sale in Dubai,” Umer Ali, Sales Director at PropertyTrader.ae comments.
“As an illustration, in January 2016 hits from Russia made up just 6 per cent of our overall traffic, yet in July it was up by nearly three times at 17 per cent — this is a significant upward trend.”
“This ties in with just published research by Russian real estate agency Tranio, which placed Dubai at the top of the most popular cities for prospective property investors right now,” adds Ali.
Russia’s interest in Dubai real estate has traditionally been driven by its luxury offerings, although the city’s health and transport, safe haven status and year-round warm weather are also factors.
Russian investors make up half of Cypriot sales
22nd July 2016
Russian investors now make up half of international Cypriot property sales, according to one company.
The Director General of the Russian subsidiary of Cybarco Development Ltd, Savvas Pastelis, told the press this week that Russian buyers account for 50 per cent of non-resident buyers, due to the island’s attractive legislation surrounding immigration.
Pastelis also highlighted the rising share of sales made up by Chinese buyers, with investors from the country now accounting for between one in five and one in four transactions.
His comments follow despite a drop in Russian overseas investment, due to the devaluation of the rouble, following the economic sanctions placed upon the country.
Russian investment in overseas property continues to drop
20th June 2016
Russian investment in overseas property has continued to drop at the start of 2016, new official figures reveal. Data from the Central Bank of the Russian Federation shows that overseas remittances for real estate purchases fell in the first quarter of 2016, with the total volume of transfers down 30 per cent year-on-year to $199 million.
This marks a new low since records first started in 2009, when $178 million left the country in the first three months of the year, according to Tranio.com.
“Overseas investments into property are nearly three times lower than the peak of 2014,” comments George Kachmazov, managing director of the online broker.
“Not only is the volume shrinking, but so are buyer budgets. On the other hand, we have noticed stable activity in cross-border transactions for investment property, particularly in terms of income-generating buy-to-let residential and commercial premises. The main trend that has emerged is the intensification of Russian corporate investment activity focused on development projects.”
Indeed, the bank’s figures only account for personal transactions, as most commercial property purchases are handled by businesses and often paid using funds that are already held abroad. Real investment volume is therefore likely much higher, but the report highlights the changing dynamics of Russia’s role in the global property sphere, following a large spike in investment in 2014, before the country’s economy was hit by the oil slump and the ruble’s devaluation.
What of the Russians who are buying? As of March 2016, the main destinations for Russian individuals purchasing overseas property are Switzerland, the UK, Latvia, the USA, Cyprus and Germany.
Russian investment in overseas property plunges $1bn
23rd March 2016
Once the big boys in global real estate, the country’s investors were responsible for record-breaking transactions in the USA and UK, as well as snapping up holiday homes in European markets. Last year, though, Russia’s appetite for property abroad significantly diminished.
According to new data from the Central Bank of Russia, cross-border transactions in foreign real estate more than halved, with the volume of transactions plummeting to $926 million, compared to $2 billion in 2014.
Tranio attributes the fall in demand to the “brutal” ruble devaluation, as well as the economic recession in the Russian Federation.
The downturn marks a significant reversal of a long-term trend: since the CBR began to publish data on cross-border transactions in 2009, transfers rose rapidly until 2015.
Tranio, though, notes that the figures may not tell the whole story: the bank’s data only accounts for personal purchases, but many Russian buyers now purchase commercial property to preserve capital as well as earn income, as an insurance against the negative economic climate back home.
This is confirmed by Tranio’s most recent findings in its “Russian Buyer Report 2015”, which found that overseas transactions with Russian-speaking clients fell by 50 per cent, but commercial property investments increased by 20 per cent.
Of those who did purchase residential real estate overseas, the majority favoured budget properties rather than the extravagant penthouses and mansions of old: 75 per cent of Russian citizens opted for budget options in holiday destinations such as Bulgaria, Greece, Spain, Thailand, Turkey or Montenegro, with 25 per cent buying property for investment purposes, generally in Germany, Italy, France and the USA.
Russian commercial property investment to grow in 2016?
10th February 2016
Russian investment in overseas commercial property could growth by as much 30 per cent this year, according to brokers.
Tranio’s fifth Russian and CIS Overseas Commercial Property Buyer Report, which surveys 714 respondents across 37 countries, arrives after a bad year for the country’s currency, with political turmoil and economic sanctions, in addition to the falling price of oil, combining to devalue the Russian ruble.
In the wake of the currency’s fall, foreign property purchases by Russian buyers halved.
The percentage of commercial property investments, though, increased.
“The most important aspect of Russian investments after the ruble crisis is the search for yields via individual buy-to-let residential property or commercial real estate, predominantly in Europe,” explains the online broker.
“The recession in Russia has forcibly transformed buyer habits and transaction volumes. Market players should expect interest in personal dwellings to dwindle but plan ahead as demand increases for income–generating property.”Google+