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Russians look to UK’s regions as Moscow vacancy rates rise

The continued decline of the Russian property market and the rouble has seen Russian investors turn towards the UK.

UK Property Investments

The continued decline of the Russian property market and the rouble has seen Russian investors turn towards the UK.

As vacancy rates for commercial property in Moscow look likely to reach 45% soon, property investment in the Russian capital has subsided as the market has been flooded with completed properties, the legacy of delays from the financial crisis in 2008.


The Russian property market has also been impacted by the wider economics of the country. With the strength of the rouble fading in recent months against the dollar, Russia is now providing less safety for property investment buyers.


The World Bank has also stated their belief that the Russian economy will continue to contract, shrinking a further 3.8% this year and then by 0.3% in 2016. These reports have been a component part of the Russian investment exodus over recent months.


The tried and tested London market is continuing to generate interest from Russian investors, but many are starting to look to the regions as an alternative to the capital. London’s market now offers properties that stand at inflated prices and offer smaller returns as a result.


This is dissuading Russian buyers from the capital, with Christie’s International Real Estate estimating that there has been a fall of 70% in the number of wealthy Russian buyers in London.

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