Russian investors on the New York real estate scene
Millions of dollars invested in buying and remodelling one-of-a-kind residences
Not all sectors of the real estate market in the United States are slumping. The sale of high-end properties to rich investors from around the world is still successful. HNWIs willing to invest in the property market of Florida and New York come above all from developing countries such as Brazil, China, India and Russia. Among these, Russian buyers are ready to spend the most to purchase luxury penthouses, oceanfront homes or trophy apartments in the US.
Over the past four years, citizens from Russia or other countries of the former Soviet Union have invested more than $1 billion in the US residential real estate market, according to the data released by US lawyers and brokers. Forbes – an American publishing and media company – has revealed that the number of billionaires in Russia and Ukraine has more than tripled since 2009.
Russian buyers are the ones with the highest budget right now and have considerable cash on hand to invest into American real estate. The great availability of cash derives from the privatisation of Russian state industries and high oil prices.
Many wealthy Russian families are interested in moving their families and their fortunes to the United States. Not only they buy one-of-a-kind apartments and houses, they also invest tens of millions of dollars in expensive remodelling projects designed by brand-name interior designers.
The interest of Russian investors in purchasing a real estate property in New York has pushed Manhattan brokers and developers to raise the prices of de luxe properties. Russian buyers usually have clear ideas about what they want – they often demand first-rate full-service residences with central park views and on-call concierge service - but they end up spending twice their original budget!