Opportunities Arise with Shifts in Latitude
Russian buyers are acquiring fewer properties abroad for relocation purposes, according to recent reports. This trend is primarily attributed to economic and financial pressures within Russia, as well as changes in investment focus and stricter migration rules.
High mortgage rates have significantly dampened demand for housing, both domestically and abroad. With rates exceeding 25%, many potential buyers find themselves constrained by their purchasing power. This has led to a drop in housing purchases by 26%-49% in the domestic market, and a decrease in foreign real estate purchases for relocation.
There has also been a shift in investment focus from residential to commercial real estate, such as offices and warehouses. Housing investments have plunged by about 49% year-on-year, reflecting investor preference for more stable returns amid economic uncertainty. This shift further reduces capital flow into residential real estate abroad.
The share of foreign sellers in Russia’s real estate investment market has also fallen from 13% to 7%, indicating lower cross-border real estate transactions and a predominance of domestic investors. This signals decreased outward real estate investment interest by Russians for relocation or investment purposes.
Mortgage arrears have risen significantly, leading banks and developers to tighten financing and sales conditions. This discourages potential buyers from making new real estate acquisitions abroad or relocating.
The economic and geopolitical context also plays a role. While foreign buyers from Russia still benefit from favorable exchange rates in markets like the US, this advantage has not translated into increased relocation-driven demand from most Russians. Domestic financial and market pressures outweigh these factors.
Despite these challenges, the share of investor buyers in the overseas real estate market remains steady at 16%, roughly the same as last year’s 17%. However, the intention for future relocation among Russian buyers has decreased, with only 59% intending for relocation in July 2025, down from 63% the previous year.
Analysts suggest that this decrease in demand for relocation properties is due to the completion of relocation waves and the peak in demand occurring in the second half of 2022. Southeast Asia remains a strong position due to its low entry threshold and popularity among tourists, factors that ensure potentially high investment returns.
In contrast, Turkey, Thailand, Indonesia, the UAE, Cyprus, and other countries continue to be popular destinations for investing in overseas real estate, particularly for leisure purposes. The geopolitical situation will play a decisive role in the future demand for overseas real estate for relocation.
Sources:
[1] Tranio. (n.d.). Russian real estate market analysis. Retrieved from https://tranio.com/blog/russian-real-estate-market-analysis/
[2] Nevestate. (n.d.). Russian real estate market analysis. Retrieved from https://nevestate.com/news
[3] Prian. (n.d.). Russian real estate market analysis. Retrieved from https://www.prian.ru/realty
[4] Golden Brown. (n.d.). Russian real estate market analysis. Retrieved from https://www.golden-brown.ru/news
[5] Ekaterina Nikitina. (n.d.). Personal communication.
finance is negatively impacted by the economic and financial pressures within Russia, causing many Russians to avoid housing investments, both domestically and abroad
the shift in investment focus from residential to commercial real estate has led to a significant decrease in foreign real estate purchases for investing purposes, reducing capital flow into overseas real estate.
