When the rich get richer: Wealthy Russians prefer London


May 30th, 2017 – Fort Russ News – 

KtoVKurse – translated by Inessa Sinchougova 

Against the background of a general decline of interest in UK property due to the financial instability of Brexit, the Russian business elite has only increased the volume of buying apartments in London.

Wealthy Russians, despite the ongoing recession in the homeland, fuelled in part by sanctions and oil prices, have not lost interest in the expensive real estate of the British capital. For the current year, the number of requests for the purchase of real estate increased by 30% in London, compared with the year before, according to the consulting company Knight Frank.

Today the most popular category of housing is “for himself, family and children” with a budget of 1.5-5 million pounds. Such requests have increased almost 60%.

Wealthy Russians prefer the central area of ​​the city – Chelsea, Westminster, Kensington, Mayfair, as well as Hampstead and Richmond. The real estate in questions are elite apartments, located near parks and green spaces.

Russians also favor (30% of requests) investment projects in residential and commercial real estate. 

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Traditionally, potential buyers from Russia are paying attention to the associated infrastructure in the form of education. For example, a project in the neighborhood of the London School of Economics is currently being built. The starting price of one-bedroom apartments is 1.4 million pounds. 

It is noteworthy that despite of increasing taxes on the purchase of housing in the UK or EU countries, the Russians do not lose interest in UK property.

The elite have generally not been affected by the economic crisis, which was the case for most of the population which fell to 2007 levels. 

According to Forbes, in 2016 the richest Russians have increased their worth by 104 billion dollars, or 5.7 trillion rubles. At the same time the rest of the population saw an average of 17% decline to their incomes.

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