The most popular European destinations among wealthy Russian buyers are London, the Cote d'Azur in France, Italian Tuscany and Lake Como, a number of Spanish resorts, as well as Switzerland. Recently, Cyprus has also claimed a place in this narrow circle of selected countries and regions.
London
Foreigners account for more than half of the purchases of premium class housing in London. Over the past two years, the supply of luxury real estate in London has significantly decreased (according to some estimates, by half compared to 2007). "Therefore, although demand for luxury real estate has also decreased after the crisis, it still significantly exceeds supply," says Gulnara Long, director of Property Vision.
The map of the most expensive and popular areas of London remains unchanged – these are Belgravia, Chelsea, Knightsbridge, Kensington, Mayfair. "There is very little new construction in central London due to strict planning restrictions and the protection of the historical appearance of the city," says Gulnara Long. In the center of the British capital, secondary housing is more often offered (for example, apartments in the "white houses" of Belgravia), less often new apartments or residences in completely rebuilt buildings. Both are about equally popular.
Among the most interesting proposals of the primary market are the NEO Bankside projects on the south bank of the Thames, One Hyde Park in Knightsbridge, The Lancasters near Hyde Park, Bramah in Chelsea, Cornwall Terrace near Regent's Park.
Cornwall Terrace is a renovated classical building on the shore of the lake in the southwestern part of Regent's Park. Eight unique residences ranging from 743 to 1300 square meters, each with its own history, are decorated with the best materials, two of them are sold furnished. The cost of apartments starts from 35,000 euros per 1 sq. m
. In the London country market, according to Elena Yurgeneva, director of the luxury real estate department at Knight Frank, the most interesting villages are St. George Hill and Wentworth Manor. These are fenced protected areas with their own golf, cricket and squash clubs. The new Warreners Lane house in St. George's Hill with six bedrooms, five living rooms, six bathrooms, private garden, swimming pool, parking is on sale for 15 million euros. "At the same time, the cost of suburban home ownership in prestigious destinations in London is lower than in the Moscow region. The average price in 2010 in the Moscow region was $5,150 per 1 sq. m, near London – $4,500 per 1 sq. m," Elena Yurgeneva notes.
France
Luxury real estate in France is concentrated in Paris, on the Cote d'Azur and ski resorts. "Demand on the Cote d'Azur has not fallen, but has grown," says Elena Yurgeneva. The activity of buyers was especially high in the first and second quarters of 2009, when individual properties were sold at a significant discount. In particular, a villa in the prestigious village of Saint Paul de Vence on the Cote d'Azur was bought in the summer of 2009 for 16.5 million euros instead of the original 25 million euros. Today, there is again a shortage of facilities in the most popular locations such as Cap Ferrat, Cap D'Antibes and Cannes.
In Saint-Paul-de-Vence, a Provencal-style villa with four bedrooms and a garden of 600 sq. m. m can be bought for 690,000 euros. A similar villa in Villefranche with a plot of 1,700 sq. m. m will cost 1.8 million euros already. The house has an area of 170 sq. m. m among the garden of 2600 sq. m. m in Cap D'Antibes is estimated at 990,000 euros. However, there is also a much more luxurious villa with a plot of 3,000 sq. m. m is already being offered for 20 million euros.
In the French Alps, Courchevel remains the most expensive resort, where the number of properties for sale is very limited. Of the five villages in Courchevel – Saint-Bon, 1300 (Le Praz), 1550, 1650 (Moriond) and 1850 – the most popular is 1850, which overlooks Mont Blanc and Vanoise National Park. Prices start from 9,000 euros per 1 sq. m. A typical example is a chalet with nine bedrooms, seven bathrooms and a garage in Courchevel 1850 for 27 million euros.
For several years now, Mezhev has been an alternative to Courchevel. "This region offers chalets, hotels, restaurants, luxury boutiques, which once brought success to Courchevel, and at the same time remains a station at one of the lowest heights. For a long time it was considered the "Alpine Saint Tropez", where you could meet high-ranking officials, politicians and world stars," says Anna Konchakova—Dezhak, director of Tsars & Stars - Tsarissimmo. The golf course makes Mezhev an almost year-round resort, its main problem is congested roads in winter. The first place in Mezhev in terms of the number of prestigious facilities is occupied by the Le Mont d'Arbois area, where new housing costs 13,000- 15,000 euros per 1 sq. m.
In Paris, luxury real estate has also been steadily rising in price since last year. "The sales price for the year increased by 15% in the 7th, 8th, north of the 16th and 17th districts. Recently, the cost of real estate in the Latin Quarter, the 5th and 6th districts has begun to grow," says Anna Konchakova-Dezhak. The most popular are apartments with an area of 250-300 sq. m. m at a price of 4-5 million euros.
3.3 million euros are apartments in the heart of Paris, a minute's walk from the Arc de Triomphe, with an area of 220 square meters. The apartment is beautifully renovated, furnished and overlooks the Avenue Marceau. 8.5 million euros – apartments of 435 sq. m. m in the 16th arrondissement, on Avenue Foch, five minutes from the Place de la Star and the Bois de Boulogne.
Italy
Real estate on the shores of Lakes Como, Maggiore and Garda has successfully survived the crisis cataclysms: the price correction for 2009, according to The Wealth Report 2010, amounted to 6.1%. "In the edge of the lakes and in particular on Lake Como, demand has not decreased during the crisis, but has increased: buyers are in a hurry to make profitable purchases. Since Lake Como has become a favorite vacation spot for Hollywood celebrities and Russian billionaires from the Forbes list, real estate prices in these parts have increased two to three times," says Elena Yurgeneva.
Nevertheless, sellers have become more compliant. "Now the buyer is given the opportunity to bargain and buy a house with a 20-30% discount. However, it is difficult to count on a large discount, since villas on the first line of the lake, with their own pier and garden, are a unique phenomenon. And this is exactly the case when demand exceeds supply, despite the global financial turmoil," Elena Yurgeneva notes.
"In Tuscany," says Marina Rizzotto, CEO of Palazzo Estate, "the cities of Forte dei Marmi, Castiglioncello, Montecatini Terme and the central part of the district, near cultural centers, are especially interesting. The islands of Capri and Sardinia, the Amalfi coast are also popular." So, of the 7,700 houses in Forte dei Marmi, only 3,200 belong to residents, and the price per square meter here is 15,000 euros. A new two-storey villa in Forte dei Marmi with an area of 200 sq. m, with two bedrooms and a children's room, surrounded by a 650 sq. m garden. m and located at a distance of 800 m from the sea can be bought for 2.5 million euros.
New areas that are popular with wealthy buyers are now being formed in Tuscany – Ancedonia, Punta Ala, Monte Argentario.
In this picturesque province, you can find entire seaside estates with several hectares of land. So, the estate for 10 million euros, a 10-minute drive from Porto Santo Stefano, consists of a main and guest house, a vineyard, an olive grove and a garden on a 10-hectare plot with private access to the sea.
Switzerland
Those wishing to purchase real estate in Switzerland must obtain permission from the federal authorities, and then from the authorities of the canton. Each canton has an annual quota for the sale of housing to foreigners. The annual quota for the country is about 1,440 permits. In the canton of Vaud, a foreigner has the right to put an object up for sale immediately after the transaction, which is impossible for most other cantons (there is usually a moratorium for the first 5-10 years after purchase). However, taxes are higher here than, for example, in the canton of Valais, and the quota is only 175 permits per year.
The average cost of Swiss real estate is 6000-7000 euros per 1 sq. m. Foreign demand is concentrated in the Swiss ski resort of St. Moritz, Gstaad, Davos and the mountainous areas around Lake Geneva (Vevey, Montreux), where 1 sq. m costs from 5,000 to 15,000 euros.
Russians are not yet the most active participants in this market, but demand is growing among them, especially since a number of developers are targeting buyers from Russia. For example, Knight Frank is presenting the Du Parc Kempinski Private Residence project on the shores of Lake Geneva in Russia. Seven of the 24 apartments in Du Parc can be sold to foreigners. The management company can assist the owners in renting out apartments at a rate of about 10,000-20,000 euros per month, including maintenance fees. The annual income of the owner is estimated at 5%. The project will be ready by 2012.
Cyprus
Speaking about luxury real estate in Cyprus, Elena Yurgeneva notes: "The real estate objects in demand among Russians are spacious villas and apartments,located in prestigious protected complexes with their own infrastructure, with panoramic sea views and at the same time within 30-60 minutes from the airport – the price correction was insignificant, about 10%."
Nevertheless, the international demand for Cypriot housing is restrained by the fact that there are still a very small number of high-class projects on the island that meet all the requirements of discerning customers: a well-maintained beach, restaurants and shops, security and concierge service, a reliable management company, stable rental income. "However, developers react to changing customer preferences and bring objects to a completely new level to the market," says Elena Yurgeneva.
Among them is the large Aphrodite Hills resort, which houses an 18–hole golf course, 12 tennis courts, a tennis Academy, spa and fitness centers, a children's club, a five-star hotel and much more. Two-storey villa on a plot of 2680 sq. m. The apartment with a swimming pool and garage is estimated at about 2.5 million euros.
Another coastal project is Akamas Bay Villas with a unique location near the Akamas National Nature Reserve. 40 villas worth from 1.8 million to 4 million euros are located in a quiet area and at the same time close to the necessary infrastructure, golf courses, a five-star hotel and an international school.
And finally, Minthis Hills is a golf residence at an altitude of 620 m above sea level in Paphos. 600 villas, a golf course, a health center, and six tennis courts are being built on 580 hectares. The area of modern–style villas is up to 300 sq. m, plots are up to 2500 sq. m, the cost is from 1.32 million to 1.84 million euros.
