Russian investment preferences shift in light of current economic conditions
Russians adjusted their investment choices amid the latest economic climate. An online vote conducted on a major financial portal showed that deposits, foreign currency, and bond purchases topped the list of preferred options.
The survey revealed that 26 percent of participants favored placing funds in deposits, 20.7 percent chose foreign currency, and 17.2 percent leaned toward buying bonds. A year earlier, real estate had led the preferences with 16.8 percent of respondents selecting it first.
Financial experts note that deposits and bonds are currently seen as more attractive than real estate, a shift attributed to the higher key interest rate set by the central bank. The logic is straightforward: higher rates boost the profitability of deposits and bonds, while mortgage costs rise, influencing real estate returns.
An analyst explained that profitability for deposits and bonds tracks the level of the key interest rate. When the rate dropped to 8 percent in mid-2022, real estate appeared more appealing. Now, with the rate around 13 percent, the balance has swung toward deposits and bonds.
In the breakdown of real estate preferences, about a third of respondents favor apartments in Moscow, followed by resort properties at 13.8 percent, foreign real estate at 11.7 percent, and commercial real estate at 10.3 percent.
Earlier this period, the government signaled extended tax incentives aimed at boosting citizens’ investment activity.
Perspectives on apartment price trajectories remain a topic of discussion, with questions about where prices will go by year’s end continuing to circulate among investors.