Which countries do Russians choose for real estate abroad?

Analysis of the popularity of foreignreal estate among Russians on Yandex

Analysis of data on search queries of Russians on Yandex over the past two years demonstrates that significant interest of compatriots is aroused by opportunities to buyreal estate abroad. Poland, ranked last in the top 10 countries in this indicator, attracted the attention of more than 220 thousand users from half of 2016 to the beginning of 2018. Interest in Polish real estate fell slightly in 2017, but a positive trend has been recorded recently, despite a slight decrease in requests in early 2018.

Growth of the real estate market in Poland

The report from Ernst & Young indicates growth in the real estate market in Poland. In 2017, a record number of new residential buildings were constructed — 90,000 units. Housing prices in the country's major cities are on the rise: the price per square meter in Tricity increased by 15%, in Łódź by 8.5%, and in Warsaw by 8.4%. Demand exceeds supply, which supports the trend of rising property values.

France as a popular destination for real estate purchases

France ranks ninth in the list of popular countries for purchasing real estate among Russian Yandex users. Over the past two years, the number of requests to find housing in this country has reached 240 thousand. A particular increase in interest in French real estate was recorded in the second quarter of 2017, when demand increased by 60%, which is the highest indicator among all countries in the study.

Preferences of Russians in Choosing Real Estate in France

Real estate specialist in France and Italy, Elena Chernysheva, notes that Russian buyers most often look for houses or apartments in France for summer vacations or long-term living. The most popular regions are the French Riviera, the Alps, and Paris. Some property owners purchase real estate with the intention of renting it out to tourists, preferring large cities like Paris and Nice, where supply and demand are almost unaffected by seasonal fluctuations.

Interest in real estate in the Czech Republic

Czechia occupies

Growing interest in real estate in different countries

Interest in real estate in various countries continues to grow among potential buyers. Especially noticeable is the saturated flow of inquiries concerning residential real estate in the Czech Republic. In the last two years, the number of requests has increased 2.5 times.

Czech real estate

According to real estate sales manager Inna Opalyuk, Czech real estate is significantly more expensive due to accessible mortgages and limited market supply. For example, property prices in Prague have increased by 5-7% annually over the past three years due to the difficulties developers face in obtaining construction permits. This process takes several years, which accounts for such price changes. As a result, many Russians prefer to buy properties at the construction stage, as these properties are about 20% cheaper.

The main factors for Russians when choosing housing in the Czech Republic are the opportunity to send their children to study at Czech universities or even to move there themselves. Among the popular cities for Russian-speaking buyers are Prague, Karlovy Vary, and Mariánské Lázně.

Growing interest in real estate in Finland

According to "Yandex," 288,000 queries about real estate in Finland were processed over two years. The popularity of this country is growing rapidly: the number of queries nearly doubled by the end of the first quarter of 2018 compared to mid-2016. The number of Russian tourists visiting Finland is also increasing: in 2017, their numbers rose by 9%, and the number of nights spent there increased by 37%. However, data from the Central Bank of Russia indicates a 14% decrease in the volume of transfers from Russia to Finland from 2015 to 2017.

Growing interest in real estate in Greece

Interest in purchasing property in Greece began to grow about a year ago. While in the fourth quarter of 2016, Yandex processed only 28,000 requests, this number nearly doubled in the first three months of 2018. Over two years, Russians sought information about buying real estate in Greece 313,000 times. The "Golden Visa" program has become one of the key incentives for investment in Greek real estate: a foreign investor who purchases property worth at least 250,000 euros is entitled to a Greek residence permit.

The growing interest in real estate in these countries is linked to innovative programs and attractive conditions for foreign investors.

Investments in Greek real estate

According to the latest data from the Bank of Greece, foreign investments in Greek real estate increased by 87% in 2017 compared to the previous year. This indicates a steady growth in interest in this sector.

Real estate in Montenegro

There is particularly high demand among Russians for real estate in Montenegro. Over the past two years, the number of inquiries related to housing in this country has increased by 336,000 and continues to grow.

• Russian buyers are considering investing in real estate on the Budvanska and Barska Rivieras in Montenegro.
• Some of them are also considering real estate in the Bay of Kotor.
• Most Russian-speaking buyers are willing to spend 100,000 euros or more on purchasing real estate.
• They are interested in both purchasing homes for their own vacation use and in the possibility of renting out the acquired properties to tourists.

Real estate in Italy

Interest among Russians in purchasing property in Italy has also significantly increased: over the past two years, the number of inquiries has risen by 60%, reaching a total of 520,000.

• The main object of desire for Russian-speaking buyers in Italy most often become houses by the sea in regions such as Tuscany, Liguria, Lake Como and Garda.
• At the same time, property prices in Italy and the budgets of Russian-speaking buyers tend to remain within 2.5 million euros.

Real estate in Germany

Interest in real estate in Germany among Russians also continues to increase. In the period from mid-2016 to the first quarter of 2018, the number of inquiries related to the purchase of housing in Germany increased to 530 thousand.

• Even more Russians are showing interest in this country through the volume of cross-border transfers by individuals: from 2015 to 2017, 1.2 billion dollars were transferred from Russia to Germany.
• This growth is driven by low mortgage interest rates of 1.5-2%, which increases demand for real estate and, as a result, housing prices are rising.

Tips for buying real estate abroad

Tips for buying real estate abroad can be useful for those who have already traveled to different corners of the world or are just planning a trip. If you have some savings and a desire to make your dream of a second home by the coast come true, it's worth exploring the most popular destinations for real estate purchases among Russians.

East Germany

Sofia Bulanova, an investment specialist, notes that the most promising cities for real estate investment are the large and medium-sized cities in Eastern Germany. Here, properties can be purchased at affordable prices, allowing for rental income, while the favorable economic environment in the region opens up opportunities for successful resale of real estate in the future.

Bulgaria

Bulgaria has long attracted Russian investors with its housing offers. In 2017, more than a quarter of a million compatriots already owned property in this country. Additionally, Bulgaria's popularity as a tourist destination adds an extra advantage when choosing a place to buy a home.

Spain

Spain has become one of the favorites among Russian investors who are purchasing real estate abroad.

In which countries are Russians looking for real estate abroad?

Analysts examined the search query statistics from Yandex regarding residential real estate in different countries from the second quarter of 2016 to the first quarter of 2018 to determine which ten countries are the most popular among Russian-speaking users of the service.

10. Poland

Poland ranks tenth among the most popular countries for purchasing foreignreal estate among Yandex users: from mid-2016 to the first quarter of 2018, the search engine processed nearly 220,000 relevant queries. While in 2016, Polish real estate was of significantly more interest to Russians than Czech or French properties, interest in it dropped considerably in the first half of 2017. Although it has started to recover recently, the number of queries processed by Yandex in the first quarter of 2018 was 30% lower than in the same period in 2017 — it is the only country for which interest decreased in 2018.

According to the consulting company Ernst & Young, the real estate market in Poland is growing: for example, in 2017, a record 90,000 new housing units were built. Prices in major cities are rising: in 2017, the price per square meter in Tricity increased by 15%, in Łódź by 8.5%, and in Warsaw by 8.4%. Demand is outpacing supply — this, combined with the rising cost of construction, is driving up prices.

9. France

Over the past two years, Yandex has processed 240,000 queries for searching apartments and houses in France. Interest in real estate in France began to grow rapidly in the second quarter of 2017: over the last year, the number of queries increased by 60% — a record growth rate among the countries considered.

According to Elena Chernysheva, a real estate sales manager in France and Italy, Russians most often look for houses or apartments in France for summer vacations or longer stays, up to six months a year. "The most popular regions are the French Riviera, the Alps, and many are interested in real estate in Paris. Among the buyers, there are those who purchase properties to rent out to tourists. Such investors usually choose large cities where there is no seasonality in business: Nice or Paris," says Elena Chernysheva. In her experience, the budget for those buying apartments for vacation or rental is limited to around 500,000 euros, while buyers of luxury apartments and villas allocate between 1.5 to 5 million euros for their purchases.

8. Czech Republic

Czech Republic turned out to be slightly more popular among Russian-speaking users of Yandex than France: from mid-2016 to the first third of 2018, the search engine processed 253,000 search queries related to residential real estate in this country. Interest in the Czech Republic has been steadily growing: over the past two years, the number of queries has increased by 2.5 times.

According to real estate sales manager Inna Opalyuk, Czech real estate is expensive due to cheap mortgages and a lack of supply in the market. "Property prices in Prague have been rising by 5-7% per year for the past three years, as it is very difficult for developers to obtain construction permits, which takes several years," she explains. Therefore, she says, many Russians prefer to buy properties at the construction stage: such apartments are about 20% cheaper. Most Russians who buy real estate in the Czech Republic either send their children to study at Czech universities or plan to move there themselves. The most popular cities among Russian-speaking buyers are Prague, Karlovy Vary, and Mariánské Lázně.

7. Finland

Over the course of two years, Yandex processed 288,000 requests for real estate searches in Finland. Its popularity is growing rapidly, but overall, the number of requests by the end of the first quarter of 2018 nearly doubled compared to mid-2016. The number of Russian tourists in Finland is also increasing: in 2017, their numbers grew by 9% compared to 2016, and the number of nights spent by Russians in Finland increased by 37%. At the same time, according to the Central Bank of Russia, the volume of transfers from Russia to Finland decreased by 14% from 2015 to 2017.

6. Greece

Interest in residential real estate in Greece began to grow about a year ago: if in the fourth quarter of 2016 "Yandex" processed only 28 thousand search applications, in the first three months of 2018 - almost twice as much. In just two years, Russians were interested in buying real estate in Greece 313 thousand times.

One of the main incentives for Russians to buyreal estate in Greece is the "Golden Visa" program, which allows foreign investors who purchase one or more properties with a total value of at least 250,000 euros to obtain a Greek residence permit. According to information from the official Greek agency Enterprise Greece, around 400 investors from Russia took advantage of this opportunity from the program's launch until the end of 2017. This is one of the cheapest "Golden Visa" programs in Europe, and in light of recent news about the recovery of the Greek economy and the rapid development of tourism, buying real estate in Greece seems like a profitable investment for many foreign buyers.