Click here to close now.

SYS-CON MEDIA Authors: Bob Gourley, Mike Kavis, Elizabeth White, John Treadway, SmartBear Blog

News Feed Item

2014 Russian Property Investment in Europe - The Facts

FARO, Portugal, April 1, 2014 /PRNewswire/ --

Algarve property website Meravista has conducted an extensive analysis of Russian buying trends. They have produced a report which exposes the truth about what, where and why Russians are investing in European property and highlights what Portugal and other countries could be doing to increase their market share.

     (Photo: http://photos.prnewswire.com/prnh/20140401/677971 )
 

Russian interest in real estate, both domestic and abroad, has increased steadily over the last decade. However, this has led to a lot of conjecture among European estate agents. The western mentality creates the assumption that the typical Russian buyer will be spending an extravagant amount of money in the sunniest possible destination, with a keen interest in new citizenship. Meravista's research reveals that this is far from the reality.

Meravista has reviewed Russia-originated reports, research, websites and internet search almost exclusively, to develop a report based on the Russian perspective of buying habits, rather than the West's perception of why, what and where this nation is investing its money.

The investment buyer 

Meravista's research shows that the key priority for Russian buyers looking to invest in foreign property is stability, making the UK the current number one choice, with Germany and France following closely behind. Affluent Russians seeking profit and status, account for 20% of all non-resident property purchases in London and Paris with an average budget of 5.5 million dollars.

Applying the same rationale of stability, Bulgaria, Spain and Portugal are considered the worst picks currently for investment due to economic uncertainty. However, analysts also acknowledge that the rock bottom prices of real estate in Spain and Portugal are actually a great opportunity to buy. They merely caution that it may take 3 to 5 years before prices rebound to allow a sale for profit. This appears to be a more realistic take on the majority of Russian property purchases.

The holiday home buyer 

More than half of all Russian purchases are for a second home.

Along with the recent spread of wealth in Russia, the nation's 'Life in two houses' tradition of owning dachas (summer houses) in the countryside has reached the middle class. The difference today is that Russians are now enjoying the opportunity to have their dacha in a foreign country. Typical price ranges preferred by Russians, are between €100,000 and €200,000 regardless of country.

More than 95% of all purchases involve the Russian buyer retaining his or her existing home in Russia. This indicates that residency and citizenship in the EU does not appear to be an objective for the majority. That being said, the recent crisis between Ukraine and Russia has seen a large increase in UK property inquiries from wealthy Russian buyers seeking the possibility of relocation to avoid the consequences of economic isolation by the West.

When Meravista surveyed agents in the Algarve, asking whether they had dealt with Russian buyers in the past 15 months, it received a mixed response. The majority reported few or no enquiries from the Russian market. A few said that the Russian clients were here to take advantage of the Golden Visa programme.

Where they are putting their money 

Portugal's Agency for Foreign Investment and Commerce (AICEP) lists Russia as the 21st out of 55 listed countries making direct investment in Portugal. The leading property portal in Russia, Prian.ru, reported the top 30 countries Russian buyers went for in 2013. Bulgaria, Spain and Germany topped their list with Portugal ranking 20th overall and the UK 22nd. Prian.ru's numbers, however, are merely a reflection of the inventory of that portal.

A more democratic approach is the measure of search volume for foreign property on Yandex.ru, Russia's largest search engine with a 60% share of the search market in that country. Using a Cyrillic broad term search on Yandex.ru for real estate and country, Meravista finds the actual interests of Russians to be somewhat different, with Bulgaria and Spain still on top but Portugal ranking 15th overall and the UK 32nd.

Even though Spain and Portugal share similar economic problems, culture and geographic location, the Russian public prefers Spain vastly more than Portugal. This is in spite of, as reported by Meravista, the reality that the cost of Portugal property is much lower than Spain's. The reason that buyers are targeting Spain, is the property listing saturation of Spain, Bulgaria and all other front runners in the property portals of Russia such as Prian.ru.

Russian property portals are dominated by the listings of estate agencies from countries who have taken the initiative to broadcast their properties there. Portugal is not one of those countries.

Meravista is currently listing over 14,000 properties for sale in the Algarve. Nearly 6,000 of these fall within the €100,000 to €200,000 price range. This alone indicates an opportunity for Portugal to target Russian buyers. But, for Portuguese estate agents, or any other country's agents for that matter, to succeed in the Russian market with its new wealth, a demand must be created where none currently exists.

About Meravista 

Meravista is the world's largest property portal devoted exclusively to the Algarve. It brings visitors the latest state-of-the art search technology, making it easy for to find their perfect property in the Algarve.

Property buyers can search for their retirement Quinta in Tavira, luxury villa in Quinta do Lago, a second home in Lagos or a beachfront apartment in Vilamoura.

They can choose their favourite location on the map, select their desired criteria, and see the Algarve properties that fit the bill:

  • View maps, listings and property details at the same time
  • Over 300 standardised property details
  • Compare properties side by side
  • Save favourite properties and searches

http://pt.meravista.com/en/home

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With IoT exploding, massive data will transform businesses with opportunities to monetize almost anything that can be measured. In this C-Level Roundtable Discussion at @ThingsExpo, Brendan O’Brien, Aria Systems Co-founder and Chief Evangelist, will lead an expert panel of consultants, thought leaders and practitioners who will look at these new monetization trends, discuss the implications, and detail lessons learned from their collective experience. Finally, the panel will point the way forw...
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable o...
SOASTA, the leader in performance analytics, today reported record growth of the CloudTest community, exceeding 30,000 registered users of the CloudTest platform in Q1 2015. SOASTA also announced widespread adoption of its Web and mobile testing solutions, with more than 1,600 customers completing more than 285,000 tests using CloudTest during the quarter. This rapid growth shows that DevOps-driven digital businesses are embracing a more continuous approach to testing, and CloudTest is meeting t...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists will discuss how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations m...
of cloud, colocation, managed services and disaster recovery solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. TierPoint, LLC, is a leading national provider of information technology and data center services, including cloud, colocation, disaster recovery and managed IT services, with corporate headquarters in St. Louis, MO. TierPoint was formed through the strategic combination of some of t...
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Softw...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) ap...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to off...
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquir...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at 16th Cloud Expo, Haseeb Budhani, CEO and Co-founder of Soha, will share five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the frict...
SYS-CON Media announced today that John Treadway’s blog has exceeded 475,000 page views. John Treadway, Vice President at Cloud Technology Partners, has surpassed 475,000 page views on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, Microservices Journal, and several others. His blog home page at SYS-CON can be found at JohnTreadway.SYS-CON.com.
SYS-CON Events announced today that Column Technologies, a global technology solutions company, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a leader in application performance and infrastructure management for commercial and federal markets. The company is headquartered in the United States, with a diverse and talented team of more than 350 employees around th...