How the real-estate trends have shifted among investors from Russia and the CIS: Tranio analytic survey (2021)
Since 2020, global travel restrictions have proven to be the primary factor impeding cross-border real estate transactions among Russian-speaking investors, according to Tranio’s latest annual survey. Despite the development of remote investment tools, physical presence remains a non-negotiable for the majority of Russian-speaking investors, a fact that rings especially true as these investors seek new properties to add to their portfolios. Our 2021 survey – the ninth such poll we have conducted in as many years – elicited responses from 414 real estate professionals across 35 countries in Europe, Asia and America, that are popular among Russian-speaking investors. Respondents include both Russian and non-Russian speaking real estate agents, brokers, developers and consultants.
Since 2020, global travel restrictions have proven to be the primary factor impeding cross-border real estate transactions among Russian-speaking investors.
This finding represents a marked shift in trends we had observed in previous years. In 2021, two-thirds of the respondents (66%) said that border closures were the top impediment to the international real estate investments. In previous years, excessively high yield expectations had been the largest impediment among our demographic, as indicated by 44% of respondents in 2019 and 56% in 2018. In 2021, excessively high yield expectations were specified as the second-place deterrent, named as an impediment by 27% of respondents – far fewer than the number who pointed to travel restrictions.
The opportunity to acquire foreign residency proved to be the key driver encouraging Russian-speaking investors to scoop up properties abroad, according to our latest poll. Toward this end, these investors have exhibited a preference for purchasing residential properties, followed by hotels, retail properties and land plots. The average transaction budget among our respondents was €620,000 – a figure that has doubled since our 2019 survey – although particular budgets vary from €180,000 to €3,000,000 by country. On average, Russian-speaking investors expect a net ROI of about 5% per annum from their core rental business.