Are Russians still in the French market?

Freezing of financial reserves of Western Russian banks, blocking of access to the capital markets of the Central Bank of Russia, exclusion from the Swift system, freezing of celebrity assets … Financial sanctions of the entire international community Responding to the invasion of Ukraine Russia is unprecedented.

For the first time in early March 2022, they significantly destabilized rubles above the 110 rubles per dollar standard.

Burns, a network specializing in luxury real estate, said: “Update the status.

Russian real estate market suspended

Russian buyers are fleeing their real estate in a situation where the ruble is free-falling and running on banks. In a week, 80% of the sales transactions were canceled and the rest were postponed. Indeed, the major interest rates of banks that have been hit by international sanctions are rising very sharply.

In this context, the transaction must be paid in full without the possibility of a loan. Therefore, Moscow’s Burns subsidiary expects rapid trading without temporary conditions when the market reopens, while also noting the increasing demand for in-situ investment to accommodate liquidity in solid assets. I am.

“Russians are investing heavily in physical gold and cryptocurrencies and will have to invest in real estate when the battle is over,” said Tibaud de Saint Vincent, president of Burns.

According to Barnes President Tibaud de San Vincent, Russians will now invest in Dubai. Photo by David Rodrigo of Unsplash

According to Barnes President Tibaud de San Vincent, Russians will now invest in Dubai. Photo by David Rodrigo of Unsplash

Dubai, Turkey, Asia … New markets for Russians

Economic Minister Bruno Le Mer estimated the value of Russia’s wealth at “almost $ 1 trillion.” Combined with the central bank’s freeze on European assets and the shutdown of the Swift system, Russian investors are at risk of withdrawing from the European market.

“At the international level, it is still too early to make an accurate diagnosis, but Russian goods will be put up for sale in large quantities in Western Europe. They are now investing in Dubai, Turkey, Asia and perhaps Africa. I’m looking forward to doing it, “analyzes Tibaud de Saint Vincent.

On the other hand, if the crisis continues and recent sanctions are maintained, transactions with Western countries will cease altogether. “The economic consequences of sanctions cannot be assessed at this stage, and we must wait, especially for the” digestion “of these measures by banks, before understanding the true implications at the local and international levels,” he added. ..

The 1990s are over when Russian billionaires bought an extraordinary property in Megève (Haute-Savoie) at record prices.Illustration Adobe Stock

The 1990s are over when Russian billionaires bought an extraordinary property in Megève (Haute-Savoie) at record prices.Illustration Adobe Stock

Little impact on the French luxury market

The 1990s are over when Russian millionaires bought luxury resorts such as the “Golden Triangle” in Paris and luxury resorts such as Antibes, Courchevel and Mejeve at record prices.

Since the merger of Crimean in 2014 and the first sanctions against certain oligarchs, the number of Russian buyers has dropped significantly. They disappeared completely in the pandemic, especially giving way to French, Lebanese and Europeans (Germans, Belgians, Swiss) who returned from abroad.

“Currently, Russian customers account for less than 0.5% of our transactions, which means 7-8 transactions per year in the segment of commodities over € 5 million, as this customer decline in recent years is so strong. Today, there are more Russian sellers than French buyers, “explains Tibaud de Saint Vincent.

Bruno Le Mer also dismissed the statement on Twitter that “all Russian oligarchs in France, the creation of a task force to allow their property and assets to be frozen”.

“Until now, there have been no requests from tax authorities for information about Russian clients,” Burns said.