Why do Russians choose the Hamptons for real estate purchases?

The appeal of Long Island for Russian millionaires

Recently, a large number of wealthy citizens from Russia have been choosing luxurious areas on Long Island for their vacations, instead of traditional spots like the resorts of Florida, California, or the French Riviera. For example, in the summer of 2011, the famous Russian billionaire Igor Sosin paid around $860,000 to rent a lavish mansion in Southampton, while in Malibu, rental prices rarely reach $100,000 a month. There is also a growing interest among Russians in purchasing real estate in states like New York and New Jersey.

Famous areas of the Hamptons

Southampton, Bridgehampton, East Hampton, Sagaponack, Sag Harbor, and Water Mill are well-known communities in the Hamptons region, located on the coast of Long Island in New York. According to data from Knight Frank, Russians hold a significant position in the local real estate market:

• In 2012, Russians ranked fourth in the number of transactions, following Americans, Brits, and French.
• About 20% of real estate transactions for properties priced over 5 million dollars were made by foreign buyers.

Reasons for the appeal of the Hamptons

Such interest in the Hamptons is quite justified. The ocean is nearby, and the sandy beaches in the area are recognized as some of the best in the USA. New York is just an hour's drive away, which attracts those looking to purchase real estate. This region has created an atmosphere of respect for personal space, which is extremely important for wealthy individuals. There are golf courses here that are among the most prestigious in the country, as well as clubs that gather members of high society.

Comparison with Rublyovka

The interest of Russians in the Hamptons can be compared to their preferences for Rublyovka: it offers the opportunity to enjoy a country getaway while also being conveniently close to the metropolis for business meetings — often done via helicopter. On Long Island, sectors of elite real estate are in demand among moguls from Wall Street and other influential figures. For instance, New York City Mayor Michael Bloomberg owns a Georgian mansion with 11 bedrooms valued at $20.4 million, while Goldman Sachs CEO Lloyd Blankfein has a seven-bedroom home worth $32.5 million.

Interest in luxury real estate

The deputy manager of hedge fund Steven Cohen occupies a mansion worth 60 million dollars, while banker Ron Baron owns 16 acres of land valued at approximately 103 million dollars. The interest of wealthy Russians in premium real estate on Long Island highlights their desire to follow the example of American tycoons. For instance, in South Hampton, there is a mansion belonging to composer Igor Krutoy.

Expert opinion

“In the luxury real estate market, we observe that many residents use their homes throughout the year, although they mainly spend the summer here. Every year, the number of people arriving in this area by helicopters and private jets is increasing. The main factors of attractiveness are”lower taxesandexceptional quality of life“— notes Maria Babaev, Managing Director of Laffey Fine Homes.”

Privacy in the Hamptons

In the real estate sector of the Hamptons, not only are the names of the most famous owners well-known, but also the fact that most of them prefer to remain private. This is achieved through a strictly enforced confidentiality policy upheld by real estate agencies.

Many deals are made through specially registered companies, which has become a common practice for stars such as actors, musicians, politicians, and highly respected athletes in the U.S. The trend of using this scheme has become particularly relevant among financiers in the context of the current economic instability.

As statedIlya BitkovA realtor from Coldwell Banker working in New Jersey, this structure helps protect assets from potential legal claims, which significantly attracts buyers with Russian roots.

Respect for personal life

The appeal of the Hamptons is largely defined by the respect for residents' personal space. Local properties often offer large plots of land, surrounded by hedges and lush gardens filled with thuja, bamboo, and impressive rhododendrons that can reach heights of up to 10 meters.

The main values of this area are traditional living, tranquility, and harmony. Homes are built with long driveways, which provide privacy for the residents and shield them from outsiders.

Diversity of real estate properties

Dreams of a perfect home with an ocean view are becoming a reality in the Hamptons, where a variety of real estate options cater to the most diverse tastes. Here you can find:

• luxurious villas with ocean views;
• private beaches;
• well-maintained garden plots;
• large horse farms;
• charming cottages;
• modern loft-style apartments.

Interest of Russian buyers

According to the wordsMaria BabaevaAccording to an expert in the real estate field, Russian buyers are showing interest in properties in this region with a price range from 3 to 20 million dollars. The most sought-after locations include:

• Bridgehampton;
• East Hampton;
• Saagaponak;
• Sag Harbor;
• Southampton.

Features of each neighborhood

Each of these neighborhoods has its own unique atmosphere. For example:

• SouthamptonIt stands out with a harmonious combination of the measured rhythm of a small town and the magnificent natural landscapes of dunes, where numerous restaurants and pubs offer the best seafood dishes.
• The total length of the coastline is 11 km, along which dozens of private beaches are scattered.
• East Hamptonfamous for its historical buildings, neatly lined up along Furzer Lane and Lily Pond Lane.
• Sag HarborIt attracts lovers of Victorian architecture with its old houses, numerous docks, and yacht clubs.
• InSaagaponakeThere are many horse farms where you can see pastures for horses.

This area is home to about 130 houses, each of which can tell interesting stories, starting from the 17th century when the first settlements were established here.

Real estate market

In the past 12 months, the Hamptons real estate market has shown significant growth, increasing by 30%. Like many other prestigious areas in the U.S., the Hamptons faced serious challenges during the economic crisis of 2008, but by 2010, the market was actively recovering, rekindling interest from both buyers and investors.

State of the real estate market

In the last two years, the real estate market has shown trends towards stability.

The Hamptons Choice: A New Era for Wealthy Russians

In recent years, there has been a clear trend where wealthy Russians are increasingly choosing not traditional resorts in Florida or California for their vacations and investments, but rather upscale communities on Long Island, such as Southampton and Bridgehampton. This represents not just a shift in preferences, but also profound changes in lifestyle and perceptions of comfort and luxury.

Russian Buyers in the Real Estate Market

While studying the data, I was struck by the fact that Russian buyers have become a significant force in the real estate market in this region. For example, in 2012, Russians ranked fourth in the number of transactions, following Americans, Brits, and French, and now foreign buyers account for 20% of all transactions in the ultra-luxury real estate market. This indicates that our compatriots are not only striving for better living conditions but are also consciously investing in their safety and privacy.

Factors of the Popularity of the Hamptons

Among the factors contributing to the popularity of the Hamptons, we can note:

• Proximity to New York
• High quality of life
• Unique nature and opportunities for outdoor activities

The unique nature of these places and the rich recreational opportunities (golf courses, local beaches) make them attractive to affluent individuals looking to escape the hustle and bustle of the city while still staying connected to the country's business center.

The Importance of Privacy

An important aspect is the issue of privacy. Many Russians, when buying property in this area, prefer to use schemes that ensure confidentiality. This is a habit inherited from American celebrities: purchasing real estate through established corporations allows them to protect their assets from lawsuits and other risks. It's not just about saving on taxes, but also about the assurance that their personal space will remain untouched.

Diversity of Real Estate

It is impossible not to mention the variety of real estate objects available on the market. This includes:

• Luxury villas with private beaches
• Charming cottages
• Modern condominiums

Everyone can find their dream home. This trend indicates that Russians are increasingly viewing the Hamptons as an equivalent to their familiar Rublyovka, where they can combine leisure and business activities, which is especially important for entrepreneurs and high-profile professionals.

Return to the Real Estate Market

Recently, the real estate market in the Hamptons has become active again after the 2008 crisis. The increase in housing prices and rising demand indicate that this area continues to be a focal point for the Russian aristocracy. In any case, the Hamptons has become not just a vacation spot, but a true arena for showcasing status and success.

Conclusion

In conclusion, it is worth noting that the Hamptons have become an important symbol of a new lifestyle for Russian buyers — a combination of seclusion, luxury, and proximity to an active business life. This trend will undoubtedly continue to develop, leaving no doubt that Long Island will become an even more significant destination on the map of elite real estate for Russians.