By the beginning of 2023, the activity of Russian-speaking real estate buyers in some foreign countries increased by 2 times or more compared to the beginning of 2022. In countries where immigrants from In Russia and other CIS countries, realtors give more optimistic forecasts of market development than in countries where our compatriots are not so noticeable.
These are some of the results of Tranio’s 11th annual survey of realtors, developers and other specialists in the international real estate market. The survey, conducted in early 2023, involved 189 respondents from 32 countries.
Russian-speaking buyers remain active in the international real estate market
Almost half of the respondents (49%) believe that in the country they represent, in 2022, Russian-speaking buyers made up the most active part of the foreign audience. At the same time, the same number of survey participants give priority to buyers from European countries.
Some respondents noted that buyers from Israel, China, the Middle East and the United States are also active in their countries.
The survey results suggest that in 2022, Russian-speaking buyers were more active in the international real estate market than in 2021: this audience was indicated by 7 percentage points more respondents than a year earlier. At the same time, the activity of buyers from European countries has significantly decreased: they were mentioned by 13 percentage points fewer survey participants than in 2021.
Comparing the results of the survey with the results of previous Tranio studies, it can be concluded that in 2022, the international real estate market saw the highest activity of Russian-speaking buyers in the entire history of observations (since 2012).
In 2022, the maximum activity of Russian-speaking buyers in the international real estate market was noted for the entire history of Tranio observations.
In 2022, the trend previously identified in the Tranio 2021 study continued: the more active Russian-speaking buyers in a particular country, the less active immigrants from European countries and vice versa. In Georgia, all 100% of respondents indicated our compatriots as the main category of buyers, and not a single respondent mentioned Europeans.
In some other countries, Russian-speaking buyers were indicated several times more often than representatives of Europe: Turkey (94% of respondents noted the activity of Russian-speaking buyers), Cyprus (73%), Montenegro (71%). (The survey participants could choose more than one answer option, so the sum of votes cast for Russian-speaking and European buyers may exceed 100%.)
The more active Russian-speaking buyers are in a particular country, the less active people from European countries are and vice versa.
On the contrary, in the Czech Republic, all respondents noted the activity of buyers from Europe and no one mentioned immigrants from Russia and the CIS countries. Europeans are also more visible in Germany (89% of respondents think so), Bulgaria (83%), Spain (82%) and Italy (77%).
In Greece, representatives of European countries came in first place, gaining only 39% of the votes, but Russian-speaking buyers are not far behind: they were indicated by 26% of the survey participants.
From an investment point of view, Greece is one of the most interesting destinations in Europe. Real estate in Athens is rising in price: in four years, housing prices in Attica grew by 32%.
At the same time, prices are still 20-25% cheaper than the peak values of 2007. Now there is time to buy real estate relatively inexpensively, and the projected return on long-term rental of an apartment in Athens is 4-4.5%.
In Greece in 2022, the activity of Russian-speaking real estate buyers was approximately on the same level as those from European countries.
The activity of Russian-speaking buyers has increased especially in Turkey and the UAE
According to the survey participants, in 2022, Russian-speaking buyers increased their activity mainly in those countries where they had previously played a dominant role in the real estate market, and vice versa, made even fewer purchases in unpopular countries. At the beginning of 2023, our compatriots in the UAE bought 1.3 times more real estate than at the beginning of 2022; in Turkey — 1.9 times more.
According to the Statistical Institute of Turkey, in February 2023, Russian citizens concluded 2.3 times more real estate transactions than in February of the previous year. This is consistent with the results of the Tranio survey; the slight difference may be explained by the fact that the Tranio study covered not only Russian citizens, but also other categories of Russian-speaking buyers.
On the contrary, in the once popular Bulgaria, respondents noted a decrease in the activity of Russian-speaking buyers by 5.8 times over the same period. In the Czech Republic, activity decreased by 5.3 times, in Italy — by 5.0 times.
At the beginning of 2023, our compatriots in Turkey bought 1.9 times more real estate than at the beginning of 2022; in the UAE — 1.3 times more.
“Golden visas” remain the main motive of Russian-speaking property buyers
In 2022, the main motive of real estate buyers from In Russia and other countries of the former USSR, it remained to obtain a residence permit or citizenship for investment: 52% of respondents think so. Despite sanctions and other restrictions, the popularity of “golden visas” and “golden passports” has hardly changed compared to the results of the 2020 survey, when this goal was also in the lead with 56% of the vote.
Some customers from In the spring of 2022, Russia considered complex transactions: for example, the purchase of real estate in Turkey with the issuance of a “golden passport” and further investment in Western countries.
In particular, Turkish citizens have access to a Greek residence permit and an E-2 visa to the United States, which Russians cannot apply for.
The investment residency motive remains popular in most of the same countries as in 2020: 89% of respondents indicated it in Turkey, 85% in Greece. As two years ago, this answer received more than 50% of the votes in Spain, Cyprus and Montenegro. In 2022, Georgia was among the leaders for the first time, where 60% of the survey participants noted the interest of Russian-speaking buyers in a residence permit for the purchase of real estate.
Russian-speaking buyers are particularly interested in residency programs for investments in Greece, Turkey and Cyprus.
According to respondents, the number of Russian-speaking buyers interested in residency for investments increased by an average of 1.7 times in 2022, although the situation varies significantly from country to country. Most of all, interest in investment residency has grown in the UAE (4.8 times), Cyprus (4.4) and in Turkey (4.3). The anti—leaders are Bulgaria and Latvia, where the popularity of residency in 2022 fell by 2.25 and 4.75 times, respectively.
In second place among the motives for buying real estate is the goal of protecting oneself from political, economic and other risks at home: 29% of respondents indicated it. In Spain, 55% of the survey participants named this motive, and in Bulgaria and Montenegro — 50% each.
The goal of capital preservation is less important: 21% of respondents named it, which is 1.6 times less than in 2020. This goal came out on top only in Germany, where 78% of the survey participants indicated it.
Russian-speaking buyers consider Germany as the highest priority country for capital preservation.
Finally, capital accumulation came in last place: only 8% of the survey participants noted this motive, compared with 26% in 2020. However, in Thailand, this motive leads with 67% of the votes.
The average budget of the transaction is 290 thousand euros
The survey results allow us to estimate the average budget of transactions with Russian-speaking buyers of residential real estate in 2022 at 290 thousand euros. This is 18% less than in 2021, and more than half as much as in 2020.
Over the past two years, the average budget for transactions with Russian-speaking buyers of residential real estate abroad has decreased from 620 to 290 thousand euros.
In most countries, the “average check” in 2022 remained at about the same level as in 2021. Purchases in Italy became 27% more expensive: an average of 800 thousand euros in 2022 against 630 thousand euros in 2021. In Germany, the growth was 18%: from 510 thousand euros in 2021 to 600 thousand euros in 2022.
The cheapest countries are Bulgaria and Georgia: according to respondents’ estimates, in 2022 the average budget of transactions with immigrants from Russia and the CIS in these countries amounted to only 90 and 94 thousand euros, respectively.
Buyers expect a rental yield of 5.25 % per annum
Russian-speaking buyers who purchased residential real estate in 2022, on average, expected a yield of 5.25% per annum. This is higher than the results of 2020: then, according to the Tranio survey participants, the average expected return was 5.0%.
In two years, the expected return has increased in many countries where it was previously above average, and decreased where it was previously below average. So, in Turkey in 2022, Russian—speaking buyers of residential real estate expected a rental yield of about 5.75% per annum, while in 2020 – by 4.90%. In Thailand, the gap is even wider: in 2020, the expected yield was 6.0% per annum, and in 2022 it was already 8.0%.
In 2022, the rental yield expected by Russian-speaking buyers of residential real estate increased compared to 2020 in countries where it used to be above average, and decreased where it used to be below average.
In Germany, the expected rental yield in 2022 decreased by 0.32 percentage points compared to the results of 2020 and amounted to 4.5% per annum.
There is a moderate trend: buyers expect higher returns in those countries where the purchase goal is more pronounced “To withdraw capital from Russia or other countries of the former USSR.” On the contrary, lower expected returns are in those countries where a significant proportion of respondents noted the goal of “Moving to a permanent place of residence.”
The main difficulties in concluding transactions are complicated money transfer procedures and low price expectations
Tranio survey participants identified two main reasons why deals with Russian-speaking buyers were disrupted in 2022:
- Buyers expected an unrealistically low price (37% of respondents).
- It was not possible to transfer money to the country of purchase (38% of respondents).
In most countries, one of these reasons noticeably prevails over the other. The problem of low price expectations is mainly noted by respondents from countries where Russian-speaking buyers are most active. Analysis of the survey results shows that this problem also correlates with interest in investment residency and is more typical for “cheap” countries than for “expensive” ones. For example, in the UAE, all 100% of the survey participants indicated that in 2022 our compatriots expected an unrealistically low price. In Thailand, Georgia and Turkey, this deal-busting factor scored 83, 75 and 72% of the votes, respectively.
In previous Tranio surveys, the problem of low price expectations has also consistently ranked first or second among the reasons why deals with Russian-speaking buyers are disrupted.
The problem of money transfer is primarily relevant for countries where Russian-speaking buyers are less active than buyers from Europe and/or other regions of the world. In Spain, 56% of respondents indicated this factor, in Italy — 50%.
In Bulgaria and on In Cyprus, both issues considered came in first place, gaining the same number of votes: 40 and 38% respectively.
The problem of low price expectations is manifested primarily in countries where Russian—speaking buyers are the most active, and the problem of money transfer is in countries where it is not the most active category.
In Germany, transactions were disrupted primarily due to the fact that the bank refused service due to the client’s ties with Russia: 71% of the survey participants think so. The same problem is in the first place in Spain (67% of respondents).
Online deals are popular where Russian-speaking buyers are active
The average share of transactions concluded remotely via the Internet in 2022 can be estimated at 9%, although in 2021 this share was estimated at 23%.
However, individual countries stand out from the general background. Online transactions are popular primarily in countries where Russian-speaking buyers are especially active. Respondents from the UAE estimate the share of online transactions at 50%, from Thailand – at 44%. Remote purchase of real estate is also practiced in Greece (the share of such transactions is 17%), Georgia (15%), Cyprus and Turkey (13% each).
Experts predict market growth in 2023
Tranio survey participants are optimistic about the future: 73% of respondents believe that the real estate market will grow in 2023, and only 3% fear a sharp collapse.
As in 2022, an “optimism index” was calculated based on the survey results, which takes values from 0 (if all respondents give the most pessimistic forecast) to 1 (if all respondents are the most optimistic). On average, for all countries, this index, as in the previous year, amounted to 0.8, which indicates generally positive expectations of market figures. The survey participants show the greatest optimism in Georgia (the index was 0.96), as well as Thailand (0.94), Montenegro (0.94) and Cyprus (0.93).
On the contrary, respondents in Austria (the index was 0.38) and Bulgaria (0.50) give pessimistic forecasts for 2023.
Positive forecasts for 2023 are given mainly in those countries where Russian-speaking property buyers are especially active and where their activity has increased during 2022. And vice versa: in countries where our compatriots play a secondary role in the real estate market, respondents tend to assume negative scenarios for 2023.
English 
Russian 
German 
Polish