Luxury real estate: who will be the new russians?

With the worsening of the Ukrainian-Russian conflict, the world of luxury real estate is wondering about the future. Here is who the new Russians will be according to the Luxforsale studies.

Since February 24, 2022, the world has literally changed. After the upheavals caused by the pandemic crisis, another shock comes from the conflict in Ukrainian territory. Like any major geopolitical event, this too is destined to change the economic geography of the main European players, in the most disparate sectors. These also include luxury real estate, an area in which Russian billionaires have long played a crucial role.

Sanctions against the oligarchs
The sanctions unveiled by the European Union and the US speak for themselves: the first objective is to hit the Russian establishment, made up of the so-called oligarchs. They are the ones who hold most of the wealth of the former Soviet Union and they are the main buyers in the Italian luxury real estate market and beyond.
According to the analysis of Luxforsale, their properties are spread over the whole territory of the beautiful country, with an obvious preference for the areas with the highest tourist rate. From the Lombard lakes (Lake Como and Lake Garda) to Liguria, passing through Tuscany, the most famous alpine ski resorts and Sardinia. Not to mention the yachts moored in the Sanremo ports and beyond.

The related activities brought by the Russians
As underlined by the recent interview with Luxforsale CEO Claudio Citzia the induced activity brought by the oligarchs in Italy is remarkable: not only real estate, but also luxury goods, watches, jewels, food, high quality wine quality and a bevy of well-paid operators at their disposal.
With sanctions, reality is now reversed. Much of the Russians' assets have been seized, as have their current accounts frozen. This is why it is mandatory to ask ourselves about the future of our sector. Paradoxically, however, the departure of the Muscovite elite brings with it new categories of buyers. Analyzing our database, on the one hand, there is a drastic decline in searches on the part of the Russian market, on the other hand there is a growing interest in the Canadian, Australian, Chinese and Arab markets.
A new geography of luxury research therefore seems to be emerging on the horizon.