Focus on Yield and Diversification: Russian Demand for Foreign Real Estate in Q3 2024
In Q3 2024, Russian interest in foreign real estate saw a slight decline, down by 0.6% compared to the previous year. For the first nine months of this year, overall demand cooled by 8.2% year-over-year.
Key Topics Covered:
- Seasonal demand fluctuations and leading trends of 2024.
- Thailand leads as a top destination for Russian investors.
- Reallocation of demand in Europe: Cyprus as an investment hotspot.
- Adaptation to changes in the UAE and Turkish markets.
- Russian budgets: affordable investment options.
Seasonal Demand and Key Trends of 2024
A significant trend in 2024 is the decline in buyers seeking residency or citizenship. In 2023, more than 28% of investors aimed to acquire residency through real estate purchases, whereas in 2024, this number has dropped to 19%, marking a 32% reduction.
Reasons for Russian Real Estate Purchases Abroad:
| Purpose | 2023 | 2024 | Change |
|---|---|---|---|
| For future relocation | 18% | 19.3% | +7.7% |
| For vacation | 18.4% | 18.8% | +2.4% |
| For vacation and rental | 28% | 37% | +32.8% |
| For resale | 2.5% | 1.7% | -33.7% |
| For obtaining residency/citizenship | 28.2% | 19.3% | -31.7% |
| For rental and future relocation | 4.2% | 2.8% | -33% |
| For children's education | 0.8% | 1.1% | +25.7% |
In 2022–2023, many clients invested abroad to meet short-term goals, such as acquiring travel documents or opening bank accounts. By 2024, these needs had been largely met.
Increasing Focus on Investment Deals
In 2024, 37% of Russians purchasing real estate plan to rent it out, compared to 28% in 2023. The seasonal peak remains in Q4 and Q1, with lower demand in Q2 and Q3.
Top Countries for Russian Real Estate Demand in January–September 2024:
| Country | Share of Applications | Year-on-Year Change |
|---|---|---|
| Thailand | 14.2% | +64.2% |
| Georgia | 13.5% | +5.1% |
| UAE | 7.6% | -22.3% |
| Greece | 6.9% | -14.6% |
| France | 6.6% | -5.9% |
| Turkey | 6.1% | -24.1% |
| Spain | 5.8% | -25.3% |
| Cyprus | 5.5% | +17.1% |
| Indonesia | 4.3% | +6.3% |
| Czech Republic | 4.2% | +72.6% |
Thailand as the Top Choice for Russians
In Q3 2024, demand for Thai real estate surged by 47%, reflecting a shift in interest from European markets to Southeast Asia. The upcoming high tourist season, starting in December, is also driving demand.
Many investors return to trusted developers for repeat purchases, thanks to high profitability from earlier projects. Some developments sell out within hours of launch.