Real Estate News | Residential Real Estate
Russians Became Most Active Foreign Buyers of Florida Properties in 2009
By Michael Gerrity | February 5, 2010 2:46 PM ET
(MOSCOW, RUSSIA) -- Demand for housing in the United States from Russians and citizens of CIS countries in 2009 increased by 250%, according to research conducted by the Moscow-based real estate agency Gordon Rock.
Most of the Russians traditionally look for Florida property (45% of Russian requests).
Russians and citizens from oil-rich CIS states became the most active foreign buyers of the Floridian property, overtaking the traditional leaders - citizens from the UK and Middle East,"- says the study. California occupied the second place (30% of requests), while New York was the third 15%.
As explained by the experts of Gordon Rock, the increased interest of Russians to the U.S. real estate, and in particular to Floridian, is closely related with the sharp decline in housing prices observed here in recent months.
So far the cost of apartments near the ocean in Miami starts at $110,000 USD, and in Orlando from $70,000 USD. Palm Coast, which in recent years priced at $400 thousand, can now be bought for $160,000 USD.
The report further states that Russian's interest in U.S. real estate started to rise in spring of 2009, driven by the desire to buy distressed properties are deep discounted prices.
According to the report, 55% of Russian property buyers pursued Economy-class housing (homes priced up to $300,000), 35% of buyers wanted Business-class housing ($300,000 to $700,000 homes) and 10% for Elite-class housing ($700,000+ homes).
The three primary reasons why Russians are purchasing property in the U.S. are for buying a vacation home, followed by investment for income, and for family reasons (business, children education, and family reunification).
According to Gordon Rock, 45% of potential Russian property buyers are coming from 2 primary cities - Moscow and St. Petersburg.