Industry analysts tracking real estate trends note a notable pullback in Russian demand for foreign property. Data cited by Intermark Global indicate a significant drop, with purchase activity flattening by 19 to 40 percent year over year. The coverage highlights this shift as a developing story in the global housing market.
In the first half of the year, Russians showed a 19 percent reduction in foreign real estate acquisitions compared with the same period in 2023. This figure reflects a broader pattern in which demand has moved through cycles over the past two years, influenced by macroeconomic and policy factors that shape investor and buyer sentiment across borders.
Intermark Global notes that the market has moved in waves due to Russians increasingly weighing foreign property options. Over the most recent six months, buyers have become more cautious, taking longer to plan each potential purchase and evaluating risk, returns, and residency implications with greater scrutiny. Irina Mosheva, managing partner at Intermark Global, emphasizes this shift in buyers’ approach, describing it as a careful recalibration rather than a retreat from international real estate altogether.
The decline in demand is linked to several converging forces. Weaker migration flows, volatility in the ruble exchange rate, the suspension of certain passport programs, and the complexities introduced by sanctions have all contributed to a more conservative purchase stance among Russian buyers. Despite these headwinds, the underlying goals behind foreign property purchases remain broadly consistent: about 40 percent of buyers intend to relocate for permanent residence, while around 60 percent pursue real estate as an investment vehicle.
Additionally, broader consumer sentiment in Russia appears to reflect a belief that real estate investments may be less profitable in the near term. Many potential buyers anticipate that mortgage costs could rise as preferential state lending programs wind down, which would, in turn, influence overall housing demand and investment calculations. This mood aligns with the cautious posture observed among lenders and financial institutions assessing risk in the current climate.
In related observations from major banks, mortgage trends among Russian borrowers are described as cautious. Lenders report heightened scrutiny of loan applications and a tighter approach to underwriting, consistent with a market preparing for slower appreciation and tighter credit conditions. The combination of policy restraint, currency fluctuations, and shifting migration patterns appears to be shaping a more deliberate decision-making process for those considering foreign real estate at the moment, even as long-term objectives remain intact for many buyers. In sum, the narrative remains one of selective participation rather than widespread recalibration away from international property opportunities. This nuanced view underscores the importance of comprehensive risk assessment and strategic planning for any investor eyeing foreign markets, especially in times of policy and currency volatility. (Attribution: Intermark Global)