Indeed, about 200,000 Russians already live in the UK, mostly in London. I believe that cultural and historical ties between our countries are very important. This is often related to education, as many Russians send their children to study in the UK, it is related to the quality of life, it is related to location, it is related to access to a variety of services and business opportunities that the UK offers. All this explains why our country is so attractive to Russian real estate buyers.
And, of course, it is especially attractive at the moment, as real estate prices have decreased. There is a lot of competition in the London real estate market right now, especially in the premium segment, so a buyer can get a property for a really good price. If we also take into account the favorable exchange rate of the pound sterling, it becomes obvious that now buying a property in the UK is an excellent investment.
What can you say about the economic relations between Russia and the UK?
As you know, the UK is the largest investor in Russia. Last year, British investments amounted to over 27 billion pounds. Unfortunately, the trade turnover between our countries has decreased significantly this year, but I see this as a consequence of global economic problems, and I am sure that volumes will recover in the future.
Unfortunately, I do not have accurate statistics on Russian investments in the British real estate market, but we know that demand is quite high. So much so that we do not need to specifically promote this market among Russian buyers – its attractiveness is obvious.
What is the current state of the British economy? The latest statistics indicate the first signs of recovery, but can we say that the "bottom" has been passed?
Indeed, the latest statistics indicate some stabilization of the economy after a long period of decline. By the end of August, GDP grew by 0.2% in three months – for the first time since May 2008. Nevertheless, it is obvious that the global recession continues to have an impact on the country's economy, and, according to the most likely scenario in the coming months, periods of growth will alternate with periods of some decline.
However, we can already talk about restoring confidence in the British economy. During the crisis, it proved to be quite flexible and diversified, largely due to the fact that industrial production accounts for almost a quarter of GDP, and ranks fifth in the world in terms of volume. This gives us reason to expect that the recovery from the recession will be quite rapid.
Is it possible to say that the recovery will begin in the coming months or next year?
This is not so much a British issue as a global one. As you know, the leaders of the leading countries of the world have agreed not to stop anti-crisis measures, and the timing of the end of the recession primarily depends on their effectiveness.
How important is the real estate market for the entire British economy?
Construction and real estate are now a global, international business that is definitely important for our economy. First of all, I am referring to the British construction industry, the second largest among the EU countries, which employs about 250,000 companies and provides exports in the amount of about 9 billion pounds per year.
As for the real estate market, it is exceptionally well developed in the UK, it presents both old, traditional houses and modern projects with innovative architecture and design. I would like to note that exceptionally high standards of environmental friendliness and energy efficiency of housing have been developed in our country. Thus, we contribute to reducing greenhouse gas emissions, because the maintenance of residential buildings is very resource–intensive. Efficient construction is one of the main directions of development of this industry.
Who can you name as the main rivals of our buyers in the British real estate market?
Potential competitors of Russians can be considered buyers from all over the world, because London is one of the world's centers, on the streets of which you can hear speech in almost any of the languages existing in the world. But if we talk about effective demand, it is impossible not to mention buyers from the Middle East, the United States, as well as the growing demand from the Chinese.
Can foreign buyers help the recovery of the British property market?
The UK is a country open to investment, and we welcome overseas property buyers. However, foreigners are mainly targeting the high-budget sector of London real estate, when demand in other regions is generated at the expense of the local population, so these are different markets.
Which British regions other than London, in your opinion, may be of interest to property buyers?
Besides the capital, there are many beautiful cities in our country. Some of them are attractive for their historical appearance, while others are large business centers. I would also mention the rural areas located near London – Hampshire, Sussex, Oxfordshire, our fantastic coast. The UK has a lot to offer buyers, except for houses in central London.
As you know, prices for British real estate have decreased recently. Is the Government taking measures to support the housing market?
Despite the decline, the real estate sector as a whole remained stable, and there was no catastrophe. People take out mortgages, buy houses, that is, the market is functioning, there are no such systemic problems as were observed in the banking business. Therefore, the Government believes that there is no reason to intervene in the situation.
Are there visa privileges for Russians who buy property in the UK?
I must say that we do not have a special visa for property owners, but they can apply for a tourist, business or student visa, depending on how they plan to use the house in the UK – for recreation, business, education, etc.
The British are rightfully considered the largest investors in foreign real estate, but recently they have increasingly had to compete with Russian investors. Do you think this trend will continue?
Yes, in the long term, as the Russian economy develops in many countries, for example in Cyprus, Russians may become as massive buyers of real estate as the British. This is another evidence of globalization, which, by the way, can contribute to informal communication between citizens of our countries, for example, if Russians turn out to be neighbors of the British at a Spanish resort.
What would you wish for Russians who are considering the UK from the point of view of buying real estate?
Of course, it is necessary to find a suitable object for purchase that would meet all the requirements of buyers. And I am sure that in the UK you can find the perfect property for every taste.