The founder of property investment site InvestorSquare, Ross Kelly, says: 'Our Study reveals that a potential 'second Cold War' between Britain and Russia would result in many extremely desirable properties returning to the market, as Russian investors retreat from 'Londongrad' and their Surrey 'dachas'.
Explains Ross: 'Though Theresa May says she is not targeting Russian private citizens, plans are underway for greater monitoring of private jets and checks at borders. Significantly, the UK has also announced a review of 700 visas granted to wealthy Russians given permission to come to Britain under an investor visa scheme, in which they promised to invest £2 million or more. The potential loss of these investors is likely to have repercussions.'
The new report reveals some huge Russian investments, says Ross: 'Prominent Russian figures with ties to the Putin regime own British properties worth at least £1.1bn, although the true value is probably far greater. In 2013 alone Russians topped the list of foreign buyers of £1m-plus London homes, spending over £500m.
Adds Ross: 'Russians are also significant investors in property developments across the UK. Their potential withdrawal is both a threat to much-needed developments, and an opportunity for new investors to pick up on these projects.'
Ross believes that there has been a significant shift in Russian investments in recent years: 'It's a outdated stereotype that Russian UK property investments are the result of ultra-rich oligarchs laundering shady money. The truth is many Russian investors, whether super-rich or of far more modest means, believed investing their hard-earned roubles in British developments was safer than leaving it in Russian banks. And many Russian buyers had recently become interested in commercial as well as residential assets.'
Explains Ross: 'Russians may have started playing the property market by purchasing a second home, but there's been a noticeable move towards more lucrative commercial developments. For example, our report reveals a private Russian buyer recently acquired the City Edge student accommodation block in Birmingham for £10.6m.'
Concludes Ross: 'The result of these retreating roubles may go in two ways. Britain may lose cash-rich investors funding much-needed new developments; but there may also some significant opportunities to snap up unexpected properties at competitive prices: from Kensington mansions to Birmingham student flats. It is an ill Cold War wind that blows no one any good.'
For more information see the full study at: https://investor-square.com/investment-news/real-estate/cold-war-lead-hot-property/
Media Contact
David Jinks, InvestorSquare
pr@investor-square.com
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