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Russians Became Most Active Foreign Buyers of Florida Properties in 2009

Michael Gerrity

Posted by Michael Gerrity 02/05/10 2:46 PM EST

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(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.



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Comments on this Story

  • sstevejone | 02/08/10 1:42 AM | Reply

    Really the article is great .Smart investors are already lining up to get in on affordable Florida property before the prices spike back up.
    There are still incredible properties available for pennies on the dollar, but as inventory declines, even more pressure will be put on prices to move them upward.
    “Buy now!” and “Hurry before you miss this opportunity!” sound like typical sales language, but there are very solid reasons why Florida housing prices have nowhere to go but up.

  • Sal Antsipenka | 02/08/10 8:50 AM | Reply

    I have beeb selling Naples Florida homes to Russians for quite a while now. They are realy buying here. It's also easy to market to Russian buyers via Internet.

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